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mkendrick08 mkendrick08
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5 years ago
Farrell and Jimmy enter into a partnership agreement on May 1, 2017. Farrell contributes $50,000 and Jimmy contributes $140,000 as their capital contributions. They decide to share profits and losses in the ratio of their respective capital account balances. The net income for the year ended December 31, 2017 is $60,000. Which of the following is the correct journal entry to record the allocation of profit? (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)

A)
Farrell, Capital44,211
Jimmy, Capital44,211

B)
Income Summary60,000
Farrell, Capital15,789
Jimmy, Capital44,211

C)
Farrell, Capital15,789
Jimmy, Capital44,211
    Income Summary60,000

D)
Income Summary28,422
Farrell, Capital15,789
Jimmy, Capital44,211
Textbook 
Horngren's Accounting

Horngren's Accounting


Edition: 11th
Authors:
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lolawwlolaww
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5 years ago
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