# Assume that Eric Duffy and Johnnie Gladwin operate a partnership. The partnership agreement states that the income and loss will be shared based on the ratio of their beginning capital balances. At the beginning of the year, Duffy had a capital balance of $80,000 and Gladwin had a capital balance of $20,000. The partnership's income statement reported net income of $90,000 for the year ending December 31. Prepare the December 31 journal entry that would be required to close the Income Summary ac

1 answer

###### Question:

Assume that Eric Duffy and Johnnie Gladwin operate a partnership. The partnership agreement states that the income and loss will be shared based on the ratio of their beginning capital balances. At the beginning of the year, Duffy had a capital balance of $80,000 and Gladwin had a capital balance of $20,000. The partnership's income statement reported net income of $90,000 for the year ending December 31. Prepare the December 31 journal entry that would be required to close the Income Summary account and allocate the net income to the two partners.

## Answers

Answer:Debit Income summary $90,000Credit Duffy, capital $72,000Credit Gladwin, capital $18,000Explanation:To close income summary account to partner’s capital, said account must be debited then credit partner’s account in the amount based on the agreed allocation ratio.Computation of allocation: (based on beginning capital balances) Duffy $80,000Gladwin $20,000——————————Total $100,000Duffy (80,000/100,000) x 90,000 = $72,000Gladwin (20,000 x 100,000) x 90,000 = $18,000JOURNAL ENTRY:Debit income summary $90,000Credit Duffy, capital $72,000Credit Gladwin, capital $18,000

#### Similar Solved Questions

1 answer

### Solve the equation algebraically 6= x+2/3 (x+2/3 is a fraction not division) Please show all steps in easiest way possible

Solve the equation algebraically
6= x+2/3
(x+2/3 is a fraction not division)
Please show all steps in easiest way possible...

1 answer

### Question of the day If you could stop one album from ever coming out what album would it be ??

Question of the day
If you could stop one album from ever coming out what album would it be ??...

2 answers

### Who is Nelson Mandela? Write a few lines on him.

Who is Nelson Mandela? Write a few lines on him....

1 answer

### Why was Grendel able to surprise the warriors of Herot on the night of his first attack?

Why was Grendel able to surprise the warriors of Herot on the night of his first attack?...

1 answer

### The hazard communication standard was modified to adopt the globally harmonized system to__________.

The hazard communication standard was modified to adopt the globally harmonized system to__________....

2 answers

### ABC had the following net income (loss) the first three years of operation: $7,100, ($1,600), and $3,600. If the Retained Earnings balance at the end of year three is $1,100, what was the total amount of dividends paid over these three years?

ABC had the following net income (loss) the first three years of operation: $7,100, ($1,600), and $3,600. If the Retained Earnings balance at the end of year three is $1,100, what was the total amount of dividends paid over these three years?...

2 answers

### The shorter leg of a 30°-60°-90° triangle is 6. What is the length of the other leg?

The shorter leg of a 30°-60°-90° triangle is 6. What is the length of the other leg?...

1 answer

### Which sentence best explains how this painting reflects the changes in England in the 1800s?

Which sentence best explains how this painting reflects the changes in England in the 1800s?...

1 answer

### A(n) is an expression that contains numbers, variable, and mathematical operations like addition, subtraction, multiplication and division and do not include equal signs.

A(n) is an expression that contains numbers, variable, and mathematical operations like addition, subtraction, multiplication and division and do not include equal signs....

1 answer

### A company wants to manufacture rolls of toilet paper. The toilet paper roll is in the shape of a hollow cylinder with a diameter of 4.75 inches. The thickness of the paper is 1.7 inches. The height of the toilet paper roll is 3.9 inches. The toilet paper costs $.02 per cubic inch. How much will it cost to manufacture 50 rolls of toilet paper?

A company wants to manufacture rolls of toilet paper. The toilet paper roll is in the shape of a hollow cylinder with a diameter of 4.75 inches. The thickness of the paper is 1.7 inches. The height of the toilet paper roll is 3.9 inches. The toilet paper costs $.02 per cubic inch. How much will it c...

2 answers

### Complete les phrases avec un des verbes suivants au participe present: sing/wait/play/go . 1. Have you ever seen any singer..... in the streets? 2. He walked along BourBon Street...... the guitar. 3. We didn't like the band so we watched the concert...... for it to finish 4. ............. to the jazz Fest is a great experience.

Complete les phrases avec un des verbes suivants au participe present:
sing/wait/play/go .
1. Have you ever seen any singer..... in the streets?
2. He walked along BourBon Street...... the guitar.
3. We didn't like the band so we watched the concert...... for it to finish
4. ............. to the ...

1 answer

### A middle-aged female presents complaining of recent weight loss. The physical exam reveals an enlarged painless cervical lymph node. The differential diagnosis for this patient's problem includes:

A middle-aged female presents complaining of recent weight loss. The physical exam reveals an enlarged
painless cervical lymph node. The differential diagnosis for this patient's problem includes:...

1 answer

### A) unicellular prokaryotes that live in dust Archaebacteria_____ b) unicellular eukaryotes that live in pond water Archaebacteria__________ c) multicellular eukaryotes that live all over the planet and consume food _Animalia___________ d) unicellular prokaryotes that live in volcanic ash and other inhospitable environments Archaebacteria _____________________ e) multicullular eukaryotes that have cell walls and are heterotrophic ______________________________ f) multicullular eukaryotes that hav

a) unicellular prokaryotes that live in dust Archaebacteria_____ b) unicellular eukaryotes that live in pond water Archaebacteria__________ c) multicellular eukaryotes that live all over the planet and consume food _Animalia___________ d) unicellular prokaryotes that live in volcanic ash and other i...

2 answers

### Bentley went into a bakery and bought 4 donuts and 10 cookies, costing a total of $23. Skylar went into the same bakery and bought 8 donuts and 6 cookies, costing a total of $25. Determine the price of each donut and the price of each cookie.

Bentley went into a bakery and bought 4 donuts and 10 cookies, costing a total of $23. Skylar went into the same bakery and bought 8 donuts and 6 cookies, costing a total of $25. Determine the price of each donut and the price of each cookie....

1 answer

### Which of the following abbreviations are used to describe the same period of time

Which of the following abbreviations are used to describe the same period of time...

1 answer

### At a waterpark, sleds with riders are sent along a slippery, horizontal surface by the release of a large, compressed spring. The spring with a force constant 42.0 N/cm and negligible mass rests on the frictionless horizontal surface. One end is in contact with a stationary wall. A sled and rider with total mass 68.0 kg are pushed against the other end, compressing the spring 0.390 m. The sled is then released with zero initial velocity.What is the sled's speed when the spring returns toits unco

At a waterpark, sleds with riders are sent along a slippery, horizontal surface by the release of a large, compressed spring. The spring with a force constant 42.0 N/cm and negligible mass rests on the frictionless horizontal surface. One end is in contact with a stationary wall. A sled and rider wi...

1 answer

### What does the value in front of x represents?

what does the value in front of x represents?...