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.

Question

Mathematics

Corinne Doyle

22 December, 01:02

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.

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Answers (2)

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Violet Kidd · Answer 1

Violet Kidd 22 December, 03:28

0

20,000 may be right possibly

Aldo Jacobson · Answer 2

The answer to your question is:

Debit Income Summary $48,000; credit Sara's Capital $16,000; credit Ellen's Capital $16,000; credit Mary's Capital $16,000.