#14.18

The Prince-Robbins partnership has the following capital account balances on January 1, 2021:

Prince is allocated 60 percent of all profits and losses with the remaining 40 percent assigned to Robbins after interest of 9 percent is given to each partner based on beginning capital balances.

On January 2, 2021, Jeffrey invests $94,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction, 9 percent interest is still to go to each partner. Profits and losses will then be split as follows: Prince (50 percent), Robbins (30 percent), and Jeffrey (20 percent). In 2021, the partnership reports a net income of $34,000.

1. Prepare the journal entry to record Jeffreys entrance into the partnership on January 2, 2021.

2. Prepare a schedule showing how the 2021 net income allocation to the partners should be determined.

Prince, Capital Robbins, Capital $ 165,000 155,000 Required A Required B Prepare the journal entry to record Jeffrey's entrance into the partnership on January 2, 2021. (If no en transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry for goodwill allocation, during the admission of a new partner. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal Required A Required B Prepare the journal entry to record Jeffrey's entrance into the partnership on January 2, 2021. (If no transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the cash received from new partner. Note: Enter debits before credits. General Journal Debit Credit Transaction 2 Record entry Clear entry View general journal Required A Required B Prepare a schedule showing how the 2021 net income allocation to the partners should be determined. (Loss amounts should be indicated with a minus sign.) Prince Robbins Jeffrey Total Net income Interest Remainder to allocate Total allocation