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The partnership agreement of Pine and Spruce was established by cash investments of $45,000 by Pine and $15,000 by Spruce. The partnership agreed to share
The partnership agreement of Pine and Spruce was established by cash investments of $45,000 by Pine and $15,000 by Spruce. The partnership agreed to share earnings on the ratio of their beginning capital investments. Required: If the partnership profit for the year ended December 31, 2021 is $85,000, prepare the journal entry to allocate the profit. Select one: O a. Debit Income Summary 85,000; Credit Pine, Withdrawals 63,750, Credit Spruce, Withdrawals 21,250. O b. Debit Income Summary 85,000; Credit Pine, Capital 63,750, Credit Spruce, Capital 21,250. O c. Debit Pine, Capital 63,750, Debit Spruce, Capital 21,250; Credit Income Summary 85,000. O d. Debit Income Summary 85,000; Credit Pine, Capital 42,500, Credit Spruce, Capital 42,500. O e. Debit Cash 85,000; Credit Pine, Capital 42,500, Credit Spruce, Capital 42,500
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