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) \[\begin{array} { | l | l | l | }
• \hline \text { Income Summary } & 23,334 & \\
• \hline \text { Farrell, Capital } & 23,333 & \\
• \hline \text { Jimmy, Capital } & & 46,667 \\
• \hline
• \end{array}\]

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Definitions:

Empathize

The ability to understand and share the feelings of another, putting oneself in their position.

Participation

The involvement or contribution of individuals in a group or activity to achieve collective goals.

Input

Contributions or information provided for a specific purpose, often used in the context of feedback or data given to enhance a process or project.

Leadership

The ability to guide, influence, and inspire a group towards achieving a common goal.