Felix and Ian Allocate 2/5 of the Profits and Losses

question 122

Multiple Choice

Felix and Ian allocate 2/5 of the profits and losses to Felix and 3/5 to Ian. The net income of the firm is $30,000. The journal entry to close the Income Summary will include:

• A)credit to Ian, Capital for $18,000.
• B)debit to Felix, Capital for $18,000.
• C)debit to Felix, Capital for $12,000.
• D)credit to Income Summary for $30,000.

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Definitions:

Jaundice

A medical condition characterized by yellowing of the skin and the whites of the eyes, caused by elevated levels of bilirubin in the blood.

Melanocytes

Cells located in the bottom layer of the skin's epidermis and in the middle layer of the eye, responsible for producing melanin, the pigment that colors the skin, hair, and eyes.

Melanin

A pigment found in most organisms, responsible for the color of skin, hair, and eyes, providing protection against UV radiation.

Decreased Blood Flow

Decreased blood flow refers to reduced circulation of blood in the body, which can lead to various health issues due to insufficient oxygen and nutrient supply to tissues.