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Vvv Vvv
wrote...
Posts: 329
5 years ago
Keith and Jim formed a partnership, with the partners sharing profits and losses equally. The partnership incurs a net loss of $5,000 for the year. The entry to close the net loss will ________.
A) debit Income Summary by $5,000
B) decrease Keith, Capital by $2,500
C) increase Jim, Capital by $2,500
D) decrease Jim, Capital by $5,000
Textbook 
Horngren's Accounting

Horngren's Accounting


Edition: 11th
Authors:
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wrote...
5 years ago
 B
Explanation:  B) Each partner's capital account will decrease by $2,500 ( $5,000  50%)
Vvv Author
wrote...
5 years ago
Ready for finals now Monkey
wrote...
5 years ago
Good luck my friend!
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