Question
Problem 4. Partnership Accounting 9 Points Holden, Phillips, and Rogers are partners with beginning-year capital balances of $120,000, $60,000, and $60,000, respectively. Partnership net income
Problem 4. Partnership Accounting 9 Points 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. Make the necessary journal entry to close Income Summary to the capital accounts if:
(a) Partners agree to divide income based on their beginning-year capital balances.
(b) Partners agree to divide income based on the ratio of 5:3:2 (Holden:Phillips:Rogers), respectively.
(c) Partnership agreement is silent as to division of income and less.
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Financial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th Edition
9781118560952, 1118560957, 978-0470239803
