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

Prince is allocated $70$ percent of all profits and losses with the remaining $30$ percent assigned to Robbins after interest of $6$ percent is

given to each partner based on beginning capital balances.

On January $2,2021,$ Jeffrey invests $$70,000$ 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 $2021,$ the partnership reports a net income of $$20,000.$

a$.$ Prepare the journal entry to record Jeffrey's entrance into the partnership on January $2,2021.$

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

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

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, Capital $ $125,000$

Robbins, Capital $115,000$

Prince is allocated $70$ percent of all profits and losses with the remaining $30$ percent assigned to Robbins after interest of $6$ percent is given to each partner based on beginning capital balances.

On January $2,2021,$ Jeffrey invests $$70,000$ cash for a $20$ percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction, $6$ percent interest is still to go to each partner. Profits and losses will then be split as follows: Prince $(50$ percent$),$ Robbins $(30$ percent$),$ and Jeffrey $(20$ percent$).$ In $2021,$ the partnership reports a net income of $$20,000.$

Prepare the journal entry to record Jeffrey$$s entrance into the partnership on January $2,2021.$

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