P 14-26 A Saved Help 1 new In the early part of 2018, the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. They had begun business in 2017 but had never used an accountant's services. 10 points Hugh and Jacobs began the partnership by contributing $110,000 and $60,000 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: eBook 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 $19,000 amount assigned to Jacobs. Any remaining income would be split on a 4:6 basis to Hugh and Jacobs, respectively. Print References In 2017, revenues totaled $135,000, and expenses were $99,000 (not including the partners' compensation allowance). Hugh withdrew cash of $7,000 during the year, and Jacobs took out $12,000. In addition, the business paid $6,500 for repairs made to Hugh's home and charged it to repair expense. On January 1, 2018, the partnership sold a 30 percent interest to Thomas for $93,000 cash. This money was contributed to the business with the bonus method used for accounting purposes. c. What journal entries should the partnership have recorded on December 31, 2017? d. What journal entry should the partnership have recorded on January 1, 2018? Complete this question by entering your answers in the tabs below. P 14-26 A Saved Help 1 Required C Required D What journal entries should the partnership have recorded on December 31, 2017? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 10 points View transaction list eBook Journal entry worksheet Print References Record entry to reclassify payment made to repair personal residence. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Mc P 14-26 Saved 1 Required C Required D What journal entries should the partnership have recorded on December 31, 2017? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 10 points View transaction list eBook Journal entry worksheet Print References Record entry to close drawings accounts for 2017. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 P 14-26 i Saved Help 1 Required C Required D What journal entries should the partnership have recorded on December 31, 2017? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 10 points View transaction list eBook Journal entry worksheet Print References Record entry to close revenue and expense accounts for 2017. Note: Enter debits before credits. Transaction General Journal Debit Credit P 14-26 Saved 1 Required C Required D What journal entries should the partnership have recorded on December 31, 2017? (If no entry is required for a transaction/event, selec "No journal entry required" in the first account field.) 10 points View transaction list eBook Journal entry worksheet Print References Record the distribution of net income to partners. Note: Enter debits before credits. Transaction General Journal Debit Credit 4 P 14-26 Saved He 1 Required C Required D What journal entry should the partnership have recorded on January 1, 2018? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 10 points View transaction list eBook Journal entry worksheet Print References
