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Holden, Phillips, and Rogers Are Partners with Beginning-Year Capital Balances

question 131

Essay

Holden, Phillips, and Rogers are partners with beginning-year capital balances of $120,000, $60,000, and $60,000, respectively. Partnership net income for the year is $84,000. Make the necessary journal entry to close Income Summary to the capital accounts if:
a. Partners agree to divide income based on their beginning-year capital balances.
b. Partners agree to divide income based on the ratio of 5:3:2 (Holden:Phillips:Rogers), respectively.
c. Partnership agreement is silent as to division of income and less.


Definitions:

Mitosis

Mitosis is a type of cell division that results in two daughter cells each having the same number and kind of chromosomes as the parent nucleus, typical of ordinary tissue growth.

Cleavage

A cellular division process in early animal embryo development, where the zygote undergoes multiple cell divisions without growth, leading to a multicellular stage.

Karyotype

The number and appearance of chromosomes in the nucleus of an eukaryotic cell. The term is also used for the complete set of chromosomes in a species or an individual organism.

G₂ Phase

A phase in the cell cycle where a cell has completed DNA synthesis and enters a period of growth and preparation for mitosis.

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