Adam, Bill, and Charlie Are Partners

question 139

Multiple Choice

Adam, Bill, and Charlie are partners. The profit and rule sharing rule between them is 2:5:3, with Bill getting the most and Adam getting the least. The partnership incurs a net loss of $72,000. While closing the Income Summary:

• A)Income Summary will be debited for $72,000.
• B)Adam, Capital will be debited for $14,400.
• C)Adam, Capital will be credited for $36,000.
• D)Charlie, Capital will be credited for $36,000.

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Definitions:

Antihistamine

A type of medication used to relieve allergic reactions by blocking the action of histamine.

Schedule III

A classification for drugs that have a moderate to low potential for physical and psychological dependence, as defined by regulatory authorities.

Talbutal

A barbiturate derivative used as a sedative and hypnotic drug.

Paregoric

An opium tincture used historically to treat diarrhea by decreasing bowel movements and to alleviate pain with its sedative effects.