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In the early part of 2 0 2 4 , the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. They had

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 accountants services.
Hugh and Jacobs began the partnership by contributing $115,000 and $65,000 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 $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 $140,000, and expenses were $125,000(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 $7,000 for repairs made to Hughs home and charged it to repair expense.
On January 1,2024, the partnership sold a 15 percent interest to Thomas for $69,000 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?

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