Alex,Brad,and Carl are partners.The profit and rule sharing rule between them is 4:3:2 in alphabetical order.The partnership incurs a net loss of $120,000.Before preparing the closing journal entry the ________.
A)Income Summary account will have a debit balance of $120,000
B)Alex,Capital account will have a debit balance of $53,333
C)Alex,Capital account will have a credit balance of $53,333
D)Carl,Capital account will have a debit balance of $26,667

Question

Quizplus · Accepted Answer

A)In closing,the Income Summary account will be debited for the total amount of Net Income and each of the Partner's Capital accounts will be credited for their respective share of Net Income.

Alex,Brad,and Carl Are Partners