Word limit : 700 words + journal entries subject : accounting basics grade level : graduate level question :unit 1 iptwo people are starting a small it firm. they come to you for advice on how to form a partnership. they have listed 2 scenarios and are asking you how to make journal entries for each one of the following transactions: two partners, a and b, start a partnership. partner a's investment is the following: cash: $20,000 inventory: $30,000 accounts payable: $50,000 computer equipment: $40,000 accumulated depreciation: $20,000 partner b's investment is the following: cash: $10,000 computer 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 partner's 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 partnership's net income is $100,000. what is small's portion of the net income? what is big's portion of the net income? make the entry for this allocation.