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:

Conservation

The protection, preservation, management, and restoration of natural environments and wildlife.

Resources

Refers to a broad range of assets, including financial, human, technological, and natural resources, available for use in the production of goods or delivery of services.

Need for Affiliation

A person's desire to build and maintain interpersonal relationships and be part of a group.

Entrepreneurship

The process of designing, launching, and running a new business or venture, often characterized by innovation and risk-taking.