Alex,Brad,and Carl Are Partners

question 137

Multiple Choice

Alex,Brad,and Carl are partners.The profit sharing rule between them is 4:3:2 in alphabetical order.The partnership incurs a net loss of $120,000.The journal entry to close Income Summary will include a ________.(Do not round any intermediate calculations.)

• A) debit to Income Summary account for $120,000
• B) debit to Alex, Capital account for $53,333
• C) credit to Alex, Capital account for $53,333
• D) credit to Carl, Capital account for $26,667

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Definitions:

Poor Quality

Refers to products or services that do not meet expected standards or specifications.

Merchandise

Goods that are bought and sold in business.

Legal Aspects

Legal aspects encompass the law-related considerations or implications present in any situation, action, or decision.

Certified Check

A check that has been marked, or certified, by the bank on which it was drawn, guaranteeing payment to the holder.