Farrell and Jimmy enter into a partnership agreement on May 1, 2017. Farrell contributes

$ 40,000

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, 2017 is

$ 50,000

.

Which of the following is the correct journal entry to record the allocation of profit? (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)

A.

Income Summary

25,000

Farrell, Capital	12,500

Jimmy, Capital		37,500

B.

Farrell, Capital

37,500

Jimmy, Capital		37,500

C.

Income Summary

50,000

Farrell, Capital		12,500

Jimmy, Capital

37,500

D.

Farrell, Capital

12,500

Jimmy, Capital	37,500

Income Summary		50,000