The Prince$-$Robbins partnership has the following capital account balances on January $1,2024$ :

Prince, Capital

Robbins, Capital

$$75,000$

$65,000$

Prince is allocated $60$ percent of all profits and losses with the remaining $40$ percent assigned to Robbins after interest of $6$ percent is

given to each partner based on beginning capital balances.

On January $2,2024,$ Jeffrey invests $$40,000$ cash for a $20$ percent interest in the partnership. This transaction is recorded by the

goodwill method. After this transaction, $6$ 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 $2024,$ the partnership reports a net income of $$10,000.$

Required:

a$.$ Prepare the journal entry to record Jeffrey's entrance into the partnership on January $2,2024.$

b$.$ Prepare a schedule showing how the $2024$ net income allocation to the partners should be determined.

Complete this question by entering your answers in the tabs below.

Prepare the journal entry to record Jeffrey's entrance into the partnership on January $2,2024.$

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

Journal entry worksheet

Record the entry for goodwill allocation, during the admission of a new partner.

Note: Enter debits before credits.