Felix and Ian Allocate 2/5 of Their Partnership's Profits and Losses

question 105

Multiple Choice

Felix and Ian allocate 2/5 of their partnership's profits and losses to Felix and 3/5 to Ian.The net income of the firm is $20,000.The journal entry to close the Income Summary will include ________.

• A) credit to Ian, Capital for $12,000
• B) debit to Felix, Capital for $12,000
• C) debit to Felix, Capital for $8000
• D) credit to Income Summary for $20,000

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Definitions:

Consent Election

A method used by workers to form a union in which they express their desire to unionize through signed authorization cards.

Decertification Election

A process by which employees can vote to remove the representation of a labor union.

National Labor Relations Board

An independent federal agency in the United States that enforces labor laws in relation to collective bargaining and unfair labor practices.

Lockout

An employer's exclusion of workers from a workplace until they meet certain conditions.