In the early part of $2024,$ the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. They had begun a new business in $2023$ but had never used an accountant$$s services.

Hugh and Jacobs began the partnership by contributing $$80,000$ and $$30,000$ 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 period.

A compensation allowance of $$5,000$ was to go to Hugh with a $$20,000$ amount assigned to Jacobs.

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

In $2023,$ revenues totaled $$90,000,$ and expenses were $$64,000($not including the partners$$ compensation allowance$).$ Hugh withdrew cash of $$8,000$ during the year, and Jacobs took out $$11,000.$ In addition, the business paid $$5,000$ for repairs made to Hugh$$s home and charged it to repair expense.

On January $1,2024,$ the partnership sold a $20$ percent interest to Thomas for $$43,000$ cash. This money was contributed to the business with the bonus method used for accounting purposes.

Required:

What journal entries should the partnership have recorded on December $31,2023?$

What journal entry should the partnership have recorded on January $1,2024?$