Homework SourseStephen Hudson andChris have capital balances of 22000 41000
Stephen, Hudson, andChris have capital balances of $22,000, $41,000, $90,000. The partners share profit as 1:1:3, respectively. The partnership had net income of $110,000 for the year. Journalize the closing entry to allocate the net income. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Solution
Journalize the closing entry to allocate the net income.
| Date | accounts & explanation | debit | credit |
| Income summary a/c | 110000 | ||
| Stephen\'s capital a/c (110000*1/5) | 22000 | ||
| Hudson\'s capital a/c (110000*1/5) | 22000 | ||
| Chris\'s capital a/c (110000*3/5) | 66000 | ||
| (To record net income transfer to owner\'s capital) | |||
