{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-27T06:11:24-04:00", "answer_date": "2024-05-27 06:11:24", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1782556", "url": "\/study-help\/questions\/-1782556", "question_creation_date_js": "2024-05-27T06:11:24-04:00", "question_creation_date": "May 27, 2024 06:11 AM", "meta_title": "[Solved] In the early part of 2 0 2 4 , the partne | SolutionInn", "meta_description": "Answer of - In the early part of 2 0 2 4 , the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. The | SolutionInn", "meta_keywords": "early,part,2,4,partners,hugh,jacobs,thomas,sought,assistance,local,accountant", "question_title_h1": "In the early part of 2 0 2 4 , the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. They had", "question_title": "In the early part of 2 0 2 4 , the partners", "question_title_for_js_snippet": "In the early part of 2 0 2 4 , the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant They had begun a new business in 2 0 2 3 but had never used an accountant s services Hugh and Jacobs began the partnership by contributing $ 1 6 5 , 0 0 0 and $ 1 1 5 , 0 0 0 in cash, respectively Hugh was to work occasionally at the business, and Jacobs was to be employed full time They decided that year end profits and losses should be assigned as follows Each partner was to be allocated 1 0 percent interest computed on the beginning capital balances for the period A compensation allowance of $ 1 0 , 0 0 0 was to go to Hugh with a $ 2 7 , 0 0 0 amount assigned to Jacobs Any remaining income would be split on a 4 6 basis to Hugh and Jacobs, respectively In 2 0 2 3 , revenues totaled $ 1 9 0 , 0 0 0 , and expenses were $ 1 5 5 , 0 0 0 ( not including the partners compensation allowance ) Hugh withdrew cash of $ 9 , 0 0 0 during the year, and Jacobs took out $ 1 4 , 0 0 0 In addition, the business paid $ 9 , 0 0 0 for repairs made to Hugh s home and charged it to repair expense On January 1 , 2 0 2 4 , the partnership sold a 1 0 percent interest to Thomas for $ 4 8 , 0 0 0 cash This money was contributed to the business with the bonus method used for accounting purposes a ) Record entry to close revenue and expense accounts for 2 0 2 3 b ) Record entry to close drawings accounts for 2 0 2 3 c ) Reclose revenue and expense accounts d ) Record entry to reclassify payment made to repair personal residence e ) Record the payment made by Thomas using the bonus method ", "question_description": "
In the early part of <\/span>2<\/mn>0<\/mn>2<\/mn>4<\/mn>,<\/mo><\/mrow><\/math> the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. They had begun a new business in <\/span>2<\/mn>0<\/mn>2<\/mn>3<\/mn><\/mrow><\/math> but had never used an accountant<\/span><\/mi><\/mrow><\/math>s services.<\/span> <\/div>
<\/div>
Hugh and Jacobs began the partnership by contributing $<\/span>1<\/mn>6<\/mn>5<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> and $<\/span>1<\/mn>1<\/mn>5<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> in cash, respectively. Hugh was to work occasionally at the business, and Jacobs was to be employed full<\/span>-<\/mo><\/mrow><\/math>time. They decided that year<\/span>-<\/mo><\/mrow><\/math>end profits and losses should be assigned as follows:<\/span> <\/div>
<\/div>
Each partner was to be allocated <\/span>1<\/mn>0<\/mn><\/mrow><\/math> percent interest computed on the beginning capital balances for the period.<\/span> <\/div>
A compensation allowance of $<\/span>1<\/mn>0<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> was to go to Hugh with a $<\/span>2<\/mn>7<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> amount assigned to Jacobs.<\/span> <\/div>
Any remaining income would be split on a <\/span>4<\/mn><\/mrow><\/math>:<\/span>6<\/mn><\/mrow><\/math> basis to Hugh and Jacobs, respectively.<\/span> <\/div>
In <\/span>2<\/mn>0<\/mn>2<\/mn>3<\/mn>,<\/mo><\/mrow><\/math> revenues totaled $<\/span>1<\/mn>9<\/mn>0<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn>,<\/mo><\/mrow><\/math> and expenses were $<\/span>1<\/mn>5<\/mn>5<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mtext>(<\/mi><\/mrow><\/math>not including the partners<\/span><\/mi><\/mrow><\/math> compensation allowance<\/span>)<\/mi>.<\/mo><\/mrow><\/math> Hugh withdrew cash of $<\/span>9<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> during the year, and Jacobs took out $<\/span>1<\/mn>4<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn>.<\/mo><\/mrow><\/math> In addition, the business paid $<\/span>9<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> for repairs made to Hugh<\/span><\/mi><\/mrow><\/math>s home and charged it to repair expense.<\/span> <\/div>
<\/div>
On January <\/span>1<\/mn>,<\/mo><\/mtext>2<\/mn>0<\/mn>2<\/mn>4<\/mn>,<\/mo><\/mrow><\/math> the partnership sold a <\/span>1<\/mn>0<\/mn><\/mrow><\/math> percent interest to Thomas for $<\/span>4<\/mn>8<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> cash. This money was contributed to the business with the bonus method used for accounting purposes.<\/span> <\/div>
<\/div>
a<\/span>)<\/mi><\/mrow><\/math> Record entry to close revenue and expense accounts for <\/span>2<\/mn>0<\/mn>2<\/mn>3<\/mn>.<\/mo><\/mrow><\/math> <\/div>
b<\/span>)<\/mi><\/mrow><\/math> Record entry to close drawings accounts for <\/span>2<\/mn>0<\/mn>2<\/mn>3<\/mn>.<\/mo><\/mrow><\/math> <\/div>
c<\/span>)<\/mi><\/mrow><\/math>Reclose revenue and expense accounts <\/span> <\/div>
d<\/span>)<\/mi><\/mrow><\/math>Record entry to reclassify payment made to repair personal residence.<\/span> <\/div>
e<\/span>)<\/mi><\/mrow><\/math>Record the payment made by Thomas using the bonus method.<\/span> <\/div>
<\/div>
<\/div><\/span> <\/div><\/div>", "transcribed_text": "", "related_book": { "title": "Fundamental financial accounting concepts", "isbn": "978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365", "edition": "8th edition", "authors": "Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/264.jpg", "uri": "\/textbooks\/fundamental-financial-accounting-concepts-8th-edition-264", "see_more_uri": "" }, "free_related_book": { "isbn": "188857027X", "uri": "\/textbooks\/numerical-trigonometry-1st-edition-978-1888570274-154588", "name": "Numerical Trigonometry", "edition": "1st Edition" }, "question_posted": "2024-05-27 06:11:24", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/environmental-economics\/compare-two-versions-of-the-twoperiod-depletable-resource-model-that-1279620", "description": "Compare two versions of the two-period depletable resource model that differ only in the treatment of marginal extraction cost. 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