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:

Lithium Carbonate

A chemical compound used primarily as a mood stabilizer in the treatment of bipolar disorder and other mental health conditions.

Bipolar Disorders

A category of mood disorders characterized by episodes of mania and depression.

Depression

A mood disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in daily activities, impacting daily functioning.

Schizophrenia

A severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.