Adam,Bill,and Charlie Are Partners

question 100

Multiple Choice

Adam,Bill,and Charlie are partners.The profit and loss sharing rule between them is 2:5:3,with Bill getting the largest share and Adam receiving the smallest.The partnership incurs a net loss of $21,000.While closing the Income Summary ________.

• A)Income Summary will be credited for $6,300
• B)Adam,Capital will be debited for $6,300
• C)Adam,Capital will be credited for $6,300
• D)Charlie,Capital will be debited for $6,300

---

Definitions:

Accrued Interest Expense

Interest expense that has been incurred but not yet paid during an accounting period.

Installment Note

A debt instrument that requires a series of payments over time until the total debt is paid off.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a predetermined price.

Bondholder's Risk

The risk faced by bond investors that the issuer may fail to make payments when due or violate terms of the bond agreement.