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

question 54

Multiple Choice

Dana and Emile allocate 2/3 of the profits and losses to Dana and 1/3 to Emile. The net income of the firm is $30,000. The journal entry to close the Income Summary will include:

• A)credit to Income Summary for $20,000.
• B)debit to Dana, Capital for $10,000.
• C)credit to Emile, Capital for $20,000.
• D)debit to Income Summary for $30,000.

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Definitions:

Hyperactivity Disorder

A condition marked by excessive energy and impulsive actions, often referred to as Attention-Deficit/Hyperactivity Disorder (ADHD).

Attention-Deficit

A disorder characterized by a consistent pattern of inattention and/or hyperactive and impulsive behavior that interferes with functioning or development.

Anxiety-Depression

A combined condition characterized by symptoms of both anxiety and depression, impacting an individual's mood and behaviors.

Affective-Disturbance

A psychological term referring to emotional instability or disorders.