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:

NaBH4

Sodium borohydride, a chemical compound used as a reducing agent in organic synthesis.

Alditol

A type of sugar alcohol formed by the reduction of the aldehyde or ketone group in monosaccharides.

L-Erythrose

A four-carbon sugar, or tetrose, with the chemical formula C4H8O4, one of the simplest aldose configurations.

NaBH4

Sodium borohydride, a reducing agent widely used in organic chemistry for the reduction of aldehydes, ketones, and aldehydes to alcohols.