Dana and Emile allocate 2/3 of the profits and losses to Dana and 1/3 to Emile.The net profit of the firm is $20,000.The journal entry to close the Income summary will include:

Name: Dana and Emile allocate 2/3 of the profits and losses to Dana and 1/3 to Emile.The net profit of the firm is $20,000.The journal entry to close the Income summary will include:
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Question

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The journal entry to close the Income Summary account involves debiting the Income Summary for the total net profit of $20,000 to zero it out.

Dana and Emile Allocate 2/3 of the Profits and Losses