The Dewie,Cheatum,and Howe partnership paid each of the partners $100,000 for the work they performed during the year.As a result of these payments,the closing process will include a:
A)credit to Salary Expense.
B)credit to each partner's Capital account.
C)credit to each partner's Drawing account.
D)debit to Salary Expense.

Question

Quizplus · Accepted Answer

Payments to partners are recorded as drawings,not salaries.The closing entry includes a debit to each partner's Capital account and a credit to each partner's Drawings account.

The Dewie,Cheatum,and Howe Partnership Paid Each of the Partners $100,000