Farrell and Jimmy Enter into a Partnership Agreement on May

question 96

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. )

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Definitions:

Pay Grades

A system of categorizing and paying employees based on their job title, experience, and responsibilities within an organization.

Pay Ranges

A structured scale that outlines the minimum, midpoint, and maximum salary for each position within an organization, facilitating fair and equitable pay.

Point Method

A quantitative technique used in job evaluation that involves assigning point values to various job components to determine the relative value of different jobs within an organization.

Disadvantages

Negative aspects or conditions that impede success or cause inefficiencies.