Thursday
November 27, 2014

Homework Help: Accounting

Posted by Bryan on Monday, June 9, 2014 at 10:27am.

What is the closing entry to allocate a net income of $48,000 to Sara, Ellen, and Mary? Respective capital balances are $30,000, $40,000, and $30,000. No agreement was made for division of income.
A. Debit Income Summary $48,000; credit Sara’s Capital $16,000; credit Ellen’s Capital $16,000; credit Mary’s Capital $16,000

B. Debit Income Summary $48,000; credit Sara’s Capital $14,400; credit Ellen’s Capital $19,200; credit Mary’s Capital $14,400

C. Debit Salary Expense $48,000; credit Salaries Payable $48,000

D. Net income cannot be allocated.

I believe the answer is C

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

accounting - Assets Cash (Net Effect) $35,000 20,000 +15,000 A/R 33,000 14,000 +...
Advanced Accounting - Mr. White (invested $20,000) and Mr. Black (invested $10,...
accounting - Cournot Company sells 100,000 wrenches for $12 a unit. Fixed costs ...
Accounting - O' Hara Company began operations on December 1, 2011. Presented ...
Accounting - What is the total stockholders' equity based on the following ...
Accounting - The capital accounts of Hawk and Martin have balances of $160,000 ...
Accounting - Janfer Book Store purchased a new automobile that cost $10,000, ...
Accounting - How do I enter the following investment as a compound entry in a ...
Accounting - Anybody out there who can help enlighten me with the following ...
Accounting 102 - Turner and Isham agreed to form a partnership. Turner ...

Search
Members