Felix and Ian Allocate 2/5 of the Profits and Losses

question 74

Multiple Choice

Felix and Ian allocate 2/5 of the profits and losses to Felix and 3/5 to Ian.The net profit of the firm is $40,000.The journal entry to close the Income summary will include:

• A)credit to Income summary for $40,000.
• B)debit to Felix,capital for $16,000.
• C)credit to Ian,capital for $24,000.
• D)debit to Felix,capital for $24,000.

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Definitions:

Innate Fear

A preprogrammed anxiety or terror response to certain stimuli, not learned through personal experience.

Hatred

Intense dislike or ill will against a person, group, or concept.

Biological Disposition

Natural predispositions or tendencies inherent in individuals, often due to genetic or physiological factors.

Homophobia

An aversion or hostility towards homosexual people, often manifesting in discriminatory or prejudicial attitudes and behaviors.