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In the early part of 2021, the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. They had begun a nen business

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In the early part of 2021, the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. They had begun a nen business in 2020 but had never used an accountant's services. Hugh and Jacobs began the partnership by contributing $160,000 and $110,000 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 10 percent interest computed on the beginning capital balances for the period - A compensation allowance of $8,000 was to go to Hugh with a $27,000 amount assigned to Jacobs. - Any remaining income would be split on a 4.6 basis to Hugh and Jacobs, respectively In 2020, revenues totaled \$185,000, and expenses were $152,000 (not including the partners' compensation allowance) Hugh withdrew cash of $9.000 during the year, and Jacobs took out $14.000. In addition, the business paid $8.500 for repairs made to Hugh's home and charged it to repair expense. On January 1, 2021, the partnership sold a 20 percent interest to Thomas for $80,000 cash. This money was contributed to the business with the bonus method used for accounting purposes. Answer the following questions c. What journal entries should the partnership have recorded on December 31, 2020 ? d. What journal entry should the partnership have recorded on January 1.2021? What journal entries should the partnership have recorded on December 31,2020 ? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer the following questions: c. What journal entries should the partnership have recorded on December 31, 2020? d. What journal entry should the partnership have recorded on January 1,2021? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What journal entry should the partnership have recorded on January 1, 2021 ? (If no entry is required for a transaction/event select "No journal entry required" in the first account field.)

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