What Is the Closing Entry to Allocate Net Income $24,000

question 85

Multiple Choice

What is the closing entry to allocate net income $24,000 to Eric,Von,and Derek? Their respective capital balances are $20,000,$40,000,and $60,000.Net income is shared in a ratio of their capital balances.

• A)Debit Income Summary $24,000; credit Eric,Capital $4,000; credit Von,Capital $8,000; credit Derek,Capital $12,000
• B)Debit Income Summary $24,000; credit Eric,Capital $8,000; credit Von,Capital $8,000; credit Derek,Capital $8,000
• C)Debit Salary Expense $24,000; credit Salaries Payable $24,000
• D)Net income cannot be allocated.

Recognize the properties of language, including symbols, arbitrariness, and regularity.

Comprehend the concept of propositional complexity in language and its impact on idea conveyance.

Understand the advantages and disadvantages of being monolingual versus bilingual.

Analyze the evidence related and contradictory to the Whorf's linguistic relativity hypothesis.

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Definitions:

Money Supply

Refers to the total amount of money available in an economy at a particular point in time, including cash and deposits.

Fed

The central banking system in the United States, known as the Federal Reserve System, is in charge of managing the country's monetary policy.

Open Market

A marketplace that is open to all participants and where goods, securities, currencies, and other items can be bought and sold.

Simple Money Multiplier

A formula used to determine the maximum amount of money that can be created by a bank's deposits under a fractional reserve banking system.