Keith and Jim formed a partnership, with the partners sharing profits and losses equally. The partnership incurs a net loss of $5000 for the year. The entry to close the net loss will ________.
A) debit Income Summary by $5000
B) decrease Keith, Capital by $2500
C) increase Jim, Capital by $2500
D) decrease Jim, Capital by $5000
B) decrease Keith, Capital by $2500
You might also like to view...
Which of the following stages of the family life cycle best describes older married couples with dependent children?
A) Full nest II B) Empty nest I C) Empty nest II D) Full nest III
Procedures such as a cutoff test and a search for unrecorded liabilities are related to subsequent events
a. True b. False Indicate whether the statement is true or false
The FTC's "do not call" registry has not been successful at all
Indicate whether the statement is true or false
Dark Room Corp purchased equipment for $45,000
Total depreciation of $36,000 was recorded. On January 1, 2017, Dark Room exchanged the equipment for new equipment, paying $65,000 cash. The market value of the new equipment is $65,000. Prepare the journal entry to record this transaction. Assume the exchange had commercial substance. What will be an ideal response