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 $$125,000$ and $$75,000$ 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 $$7,000$ was to go to Hugh with a $$21,000$ amount assigned to Jacobs.

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

In $2023,$ revenues totaled $$150,000,$ and expenses were $$131,000($not including the partners' compensation allowance$).$ Hugh withdrew cash of $$7,000$ during the year, and Jacobs took out $$12,000.$ In addition, the business paid $$8,000$ for repairs made to Hugh's home and charged it to repair expense.

On January $1,2024,$ the partnership sold a $15$ percent interest to Thomas for $$40,000$ cash. This money was contributed to the business with the bonus method used for accounting purposes.

Required:

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

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

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

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$\backslash$table$[[$No$,$Transaction,General Journal,Debit,Credit$],[1,$a$,$Cash,$40,000,],[,,$Thomas, capital,,$],[,,$Hugh, capital,,$],[,,$Jacobs, capital,,$]]$Help find quick