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16 October, 07:38

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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  1. 16 October, 07:43
    0
    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.
  2. 16 October, 08:07
    0
    20,000 may be right possibly
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