Bob and Bill Allocate 2/3 of Their Partnership's Profits and Losses

question 134

Multiple Choice

Bob and Bill allocate 2/3 of their partnership's profits and losses to Bob and 1/3 to Bill.The net income of the firm is $20,000.The journal entry to close the Income Summary will include ________.

• A)credit to Income Summary for $13,333
• B)debit to Bob,Capital for $6,667
• C)credit to Bob,Capital for $13,333
• D)credit to Income Summary for $20,000

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Definitions:

Authoritarian

A dictatorial approach focused on high demands and low responsiveness, often enforcing strict rules and expecting complete obedience.

Indulgent

Exhibiting leniency or a tendency to be overly generous in granting freedom or wishes to oneself or others.

Cultural Goal

Objectives, ideals, or outcomes that are valued and pursued by a community or society, shaping behaviors and norms.

Survival Goal

An objective or aim focused on ensuring the continued existence, safety, and well-being of an individual or group in challenging circumstances.