In the early part of $2021,$ the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant.

They had begun a new business in $2020$ but had never used an accountant's services.

Hugh and Jacobs began the partnership by contributing $$180,000$ and $$130,000$ 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

perlod.

A compensation allowance of $$7,000$ was to go to Hugh with a $$29,000$ amount assigned to Jacobs.

Any remaining income would be split on a $4$:$6$ basis to Hugh and Jacobs, respectively.

In $2020,$ revenues totaled $$205,000,$ and expenses were $$164,000($not including the partners' compensation

allowance$).$ Hugh withdrew cash of $$10,000$ during the year, and Jacobs took out $$15,000.$ In addition, the

business paid $$7,500$ for repairs made to Hugh's home and charged it to repair expense.

On January $1,2021,$ the partnership sold a $15$ percent interest to Thomas for $$74,000$ 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 $1,2021?$

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 transactiol

select $"$No journal entry required" in the first account field.$)$