Hip Partners is made up of two partners (Deedle and Twee). This year, the partnership earned $50,000. The partnership terms allow for each partner to receive a salary of $30,000 and the remainder to be distributed evenly. This year, the entry to close income summary to capital for each partner will include:

a. Credit to Capital $25,000 

b. Debit to Capital $5,000 

c. Debit to Capital $25,000 

d. Credit to Capital $30,000

Answer rating: 100% (QA)

The entry to close income summary to capital for each partner will involve credit... View the full answer