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In the early part of 2 0 2 4 , the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. They had
In the early part of the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. They had begun a new business in but had never used an accountants services.
Hugh and Jacobs began the partnership by contributing $ and $ in cash, respectively. Hugh was to work occasionally at the business, and Jacobs was to be employed fulltime. They decided that yearend profits and losses should be assigned as follows:
Each partner was to be allocated percent interest computed on the beginning capital balances for the period.
A compensation allowance of $ was to go to Hugh with a $ amount assigned to Jacobs.
Any remaining income would be split on a : basis to Hugh and Jacobs, respectively.
In revenues totaled $ and expenses were $not including the partners compensation allowance Hugh withdrew cash of $ during the year, and Jacobs took out $ In addition, the business paid $ for repairs made to Hughs home and charged it to repair expense.
On January the partnership sold a percent interest to Thomas for $ cash. This money was contributed to the business with the bonus method used for accounting purposes.
Required:
What journal entries should the partnership have recorded on December
What journal entry should the partnership have recorded on January
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