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Partners R and S receive a salary allowance of $3,000 and $7,000, respectively, and share the remainder equally. If the company earned $4,000 during the
Partners R and S receive a salary allowance of $3,000 and $7,000, respectively, and share the remainder equally. If the company earned $4,000 during the period, the entry to close the income or loss into their capital accounts is:
Select one:
a. Income Summary Dr 6,000
R, Capital Cr 3,000
S, Capital Cr 3,000
b. Income Summary Dr 10,000
R, Capital Cr 3,000
S, Capital Cr 7,000
c. Income Summary Dr 14,000
R, Capital Cr 7,000
S, Capital Cr 7,000
d. Income Summary Dr 4,000
S, Capital Cr 4,000
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