Dana and Emile Allocate 2/3 of the Profits and Losses

question 70

Multiple Choice

Dana and Emile allocate 2/3 of the profits and losses to Dana and 1/3 to Emile.The net profit of the firm is $20,000.The journal entry to close the Income summary will include:

• A)credit to Emile,capital for $13,333.
• B)credit to Income summary for $13,333.
• C)debit to Income summary for $20,000.
• D)debit to Dana,capital for $6667.