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In the early part of 2018, the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. They had begun a new business in 2017 but had never used an accountant's services Hugh and Jacobs began the partnership by contributing $75,000 and $25,000 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 . A compensation allowance of $7000 was to go to Hugh with a $15.000 amount assigned to Jacobs. - Any remaining income would be split on a 46 basis to Hugh and Jacobs, respectively interest computed on the beginning capital balances for the period In 2017, revenues totaled $100,000, and expenses were $78.000 (not including the partners' compensation allowance), Hugh withdrew cash of $5.000 during the year, and Jacobs took out $10,000. In addition, the business paid $6,000 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 $63000 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 Required C Required D What journal entries should the partnership have recorded on December 31, 20127 (If no ntry is required for a transaction/event, select No iournal entryi require d in the first account ieldl E ext

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