n the early part of $2024,$ the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. They had begun a new

pusiness in $2023$ but had never used an accountant's services.

Hugh and Jacobs began the partnership by contributing $$125,000$ and $$55,000$ 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

ollows:

Each partner was to be allocated $10$ percent interest computed on the beginning capital balances for the period.

A compensation allowance of $$7,000$ was to go to Hugh with a $$19,000$ amount assigned to Jacobs.

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

n $2023,$ revenues totaled $$130,000,$ and expenses were $$96,000($not including the partners' compensation allowance$).$ Hugh

withdrew cash of $$6,000$ during the year, and Jacobs took out $$11,000.$ In addition, the business paid $$9,000$ 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 $$38,000$ 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 $1,2024?$

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.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 $$125,000$ and $$55,000$ 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 $$7,000$ was to go to Hugh with a $$19,000$ amount assigned to Jacobs.

Any remaining Income would be split on a $4$:$6$ basls to Hugh and Jacobs, respectlvely.

In $2023,$ revenues totaled $$130,000,$ and expenses were $$96,000($not Including the partners' compensation allowance$).$ Hugh

Withdrew cash of $$6,000$ during the year, and Jacobs took out $$11,000.$ In addition, the business pald $$9,000$ for repalrs made to

Hugh's home and charged it to repalr expense.

On January $1,2024,$ the partnership sold a $15$ percent interest to Thomas for $$38,000$ cash. This money was contrlbuted to the

business with the bonus method used for accounting purposes.

Required:

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

d$.$ What Journal entry should the parthership have recorded on January $1,2024?$

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 $1,2024?$

Note: If no entry is required for a transaction$/$event$,$ select $"$No joumal entry required" in the first account field.