Farrell and Jimmy Enter into a Partnership Agreement on May $$\begin{array} { | c | c | c | } \hline \text { Farrell, Capital } & 46,667 & \\\hline \text { Jimmy, Capital } & & 46,667 \\\hline\end{array}$$

Multiple Choice

Farrell and Jimmy enter into a partnership agreement on May 1,2018.Farrell contributes $60,000 and Jimmy contributes $120,000 as their capital contributions.They decide to share profits and losses in the ratio of their respective capital account balances.The net income for the year ended December 31,2018 is $70,000.Which of the following is the correct journal entry to record the allocation of profit? (Do not round any intermediate calculations.Round your final answers to the nearest dollar.)

A) $$\begin{array} { | c | c | c | } \hline \text { Farrell, Capital } & 46,667 & \\\hline \text { Jimmy, Capital } & & 46,667 \\\hline\end{array}$$
B) $$\begin{array} { | c | c | c | } \hline \text { Income Summary } & 70,000 & \\\hline \text { Farrell, Capital } & & 23,333 \\\hline \text { Jimmy, Capital } & & 46,667 \\\hline\end{array}$$
C) $$\begin{array} { | l | l | l | } \hline \text { Farrell, Capital } & 23,333 & \\\hline \text { Jimmy, Capital } & 46,667 & \\\hline \text { Income Summary } & & 70,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | l | } \hline \text { Income Summary } & 23,334 & \\\hline \text { Farrell, Capital } & 23,333 & \\\hline \text { Jimmy, Capital } & & 46,667 \\\hline\end{array}$$