Need Help:

Zheng invested $164,000 and Murray invested $264,000 in a partnership. They agreed to share incomes and losses by allowing a $76,000 per year salary allowance to Zheng and a $56,000 per year salary allowance to Murray, plus an interest allowance on the partners beginning-year capital investments at 10%, with the balance to be shared equally. Assuming net income for the current year is $137,000, the journal entry to allocate net income is:

Multiple Choice

A. Debit Income Summary, $137,000; Credit Zheng, Capital, $73,500, Credit Murray, Capital, $63,500.

B. Debit Income Summary, $137,000; Credit Zheng, Capital, $47,800, Credit Murray, Capital, $89,200.

C. Debit Zheng, Capital, $73,500, Debit Murray, Capital, $63,500; Credit Income Summary, $137,000;

D. Debit Income Summary, $137,000; Credit Zheng, Capital, $45,700, Credit Murray, Capital, $91,300.

E. Debit Income Summary, $137,000; Credit Zheng, Capital, $68,500, Credit Murray, Capital, $68,500.