Answer & Explanation:Please create journal entries for each of the two scenarios. Each journal entry needs to have a narration/explanation as to how it was completed.Two partners, A and B, start a partnership. Partner As investment is the following: Cash: $20,000Inventory: $30,000Accounts payable: $50,000Computer equipment: $40,000Accumulated depreciation: $20,000 Partner Bs investment is the following: Cash: $10,000Computer software: $20,000 Two partners, Small and Big, form a partnership in which Small invested $40,000 and Big invested $60,000 for a total capital of $100,000. But Small devotes more time to the business and earns more from the firm. They have agreed to share the profits as follows: The first $20,000 is allocated on the partners capital balances.The next $30,000 is allocated based on service: Small gets $20,000, and Big gets $10,000.Any remaining profits are allocated equally.The partnerships net income is $100,000.What is Smalls portion of the net income? What is Bigs portion of the net income? Make the entry for this allocation.
