Farrell and Jimmy Enter into a Partnership Agreement on May $$\begin{array} { | c | c | c | } \hline \text { Farrell, Capital } & 46,667 & \\\hline \text { Jimmy, Capital } & & 46,667 \\\hline\end{array}$$

question 82

Multiple Choice

Farrell and Jimmy enter into a partnership agreement on May 1,2018.Farrell contributes $60,000 and Jimmy contributes $120,000 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 31,2018 is $70,000.Which of the following is the correct journal entry to record the allocation of profit? (Do not round any intermediate calculations.Round your final answers to the nearest dollar.)

• A) \[\begin{array} { | c | c | c | }
• \hline \text { Farrell, Capital } & 46,667 & \\
• \hline \text { Jimmy, Capital } & & 46,667 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | c | c | }
• \hline \text { Income Summary } & 70,000 & \\
• \hline \text { Farrell, Capital } & & 23,333 \\
• \hline \text { Jimmy, Capital } & & 46,667 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | l | }
• \hline \text { Farrell, Capital } & 23,333 & \\
• \hline \text { Jimmy, Capital } & 46,667 & \\
• \hline \text { Income Summary } & & 70,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | l | }
• \hline \text { Income Summary } & 23,334 & \\
• \hline \text { Farrell, Capital } & 23,333 & \\
• \hline \text { Jimmy, Capital } & & 46,667 \\
• \hline
• \end{array}\]

Understand the steps to manage personal finances and investments during an economic crisis.

Grasp the concept of risk tolerance and asset distribution based on age.

Describe the levels of investment and examples for each level.

Analyze how asset allocation can minimize losses in investments.

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Definitions:

Activity-Based Costing

A costing method that assigns costs to products based on the activities it requires for production, aiming for more accurate product costing.

Overhead Assigned

The allocation of indirect costs to specific products or cost objects.

Traditional Costing

A costing methodology that allocates manufacturing overhead costs to products based on a predetermined rate, often volume-based such as labor hours or machine hours.

Direct Labor-Hours

An evaluation of the cumulative hours spent directly in the manufacturing of products.