Farrell and Jimmy Enter into a Partnership Agreement on May

question 70

Multiple Choice

Farrell and Jimmy enter into a partnership agreement on May 1, 2015. Farrell contributes $50,000 and Jimmy contributes $150,000 as their capital contributions. They decide to share profits and losses in the ratio of their respective capital account balances. The net income for the year ended December 31, 2015 is $60,000. Which of the following is the correct journal entry to record the allocation of profit?

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Definitions:

Negative Emotions

Feelings or responses that are generally distressing and unpleasant, such as sadness, anger, or fear, which can impact behavior and decision-making.

Bipolar II

A subtype of bipolar disorder characterized by patterns of depressive episodes and hypomanic episodes, but not the full-blown manic episodes of Bipolar I.

Major Depressive

A mental disorder characterized by at least two weeks of pervasive sadness or loss of interest in activities, accompanied by additional psychological symptoms.

Persistent Depressive

A chronic form of depression marked by a long-term, continuous presence of sad or empty mood, also known as dysthymia.