What is the closing entry to allocate net income $24,000 to Eric,Von,and Derek? Their respective capital balances are $20,000,$40,000,and $60,000.Net income is shared in a ratio of their capital balances.

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The net income of $24,000 is allocated based on the capital balances ratio of Eric, Von, and Derek, which are $20,000, $40,000, and $60,000 respectively. The total capital is $120,000. Thus, Eric's share is 1/6 ($20,000/$120,000), Von's share is 1/3 ($40,000/$120,000), and Derek's share is 1/2 ($60,000/$120,000). Therefore, Eric gets $4,000 (1/6 of $24,000), Von gets $8,000 (1/3 of $24,000), and Derek gets $12,000 (1/2 of $24,000).

What Is the Closing Entry to Allocate Net Income $24,000