The Net Income Earned by the Cooper,Cross,and Crane Partnership Is

question 104

Multiple Choice

The net income earned by the Cooper,Cross,and Crane partnership is $18,000.Their respective average capital balances are $20,000,$20,000,and $40,000.What is the closing entry to allocate the net income if no agreement was made for division of income?

• A)Debit Income Summary $18,000; credit Cooper,Capital $6,000; credit Cross,Capital $6,000; credit Crane,Capital $6,000
• B)Debit Income Summary $18,000; credit Cooper,Capital $4,500; credit Cross,Capital $4,500; credit Crane,Capital $9,000
• C)Cannot allocate net income.
• D)Debit Cooper,Capital $6,000; debit Cross,Capital $6,000; debit Crane,Capital $6,000; credit Income Summary $18,000

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Definitions:

Personal Effort

The amount of energy, time, or commitment one puts into an activity or task to achieve desired results or goals.

Organizational Effort

The collective energy, work, and actions employees put into achieving the objectives and goals of their organization.

Passive-Aggressive

A defensive mechanism where individuals express negative feelings, resentment, or aggression in indirect ways instead of openly addressing them.

Red Tape

Excessive bureaucracy or adherence to rules and formalities, often hindering decision-making and efficient operation.