Bob and Bill Allocate 2/3 of the Profits and Losses

question 160

Multiple Choice

Bob and Bill allocate 2/3 of the profits and losses to Bob and 1/3 to Bill. 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 Bob, Capital for $10,000.
• C)credit to Bob, Capital for $20,000.
• D)credit to Income Summary for $30,000.

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