Friday
March 6, 2015

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 - The capital accounts of Hawk and Martin have balances of $160,000 ...
accounting - Cournot Company sells 100,000 wrenches for $12 a unit. Fixed costs ...
Advanced Accounting - Mr. White (invested $20,000) and Mr. Black (invested $10,...
accounting - Assets Cash (Net Effect) $35,000 20,000 +15,000 A/R 33,000 14,000 +...
Accounting 102 - Turner and Isham agreed to form a partnership. Turner ...
accounting - kindly please help me. B1, G1, and P1 formed a partnership. They ...
finance (firm's net income) - If a firm has a break-even point of 20,000 units ...
Accounting - Anybody out there who can help enlighten me with the following ...
finance (net income) - If a firm has a break-even point of 20,000 units and the ...
Accounting - O' Hara Company began operations on December 1, 2011. Presented ...

Members