Question
Holden, Phillips, and Rogers are partners with beginning-year capital balances of $120,000, $60,000, and $60,000, respectively. Partnership net income for the year is $84,000. Whats
Holden, Phillips, and Rogers are partners with beginning-year capital balances of $120,000, $60,000, and $60,000, respectively. Partnership net income for the year is $84,000. Whats the journall entry to close Income Summary to the capital accounts if:
The partners agree to divide income based on their beginning-year capital balances?
The partners agree to divide income based on the ratio of 5:3:2 (Holden:Phillips:Rogers), respectively.
The partnership agreement is silent as to division of income and less.
Date Account Titles and Explanation P. R. Debit Credit
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
15th Edition
978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960
