The Prince Robbins partnership has the following capital account balances on January 1, 2021 Prince, Capital Robbinn, Capital $ 80,000 70,000 Prince is allocated 70 percent of all profits and losses with the remaining 30 percent assigned to Robbins after interest of 7 percent is given to each partner based on beginning capital balances On January 2, 2021. Jeffrey invests $43,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction 7 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 $12,000. 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. Required A Required B Prepare the journal entry to record Jeffrey's entrance into the partnership on January 2, 2021. (If no entry is required for a transaction/event, select "No journal entry required in the first account held.) Credit View transaction list View journal entry worksheet No Transaction General Journal 1 1 Cash Goodwill Jeffrey Capital Debit 43,000 5,500 37,500 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. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the journal entry to record Jeffrey's entrance into the partnership on January 2, 2021. (If no entry is required for a transaction/event, select "No journal entry required in the first account Meld) View transaction list View journal entry worksheet No Transaction General Journal Credit Debit 43,000 1 1 Cash Goodwill Jeffrey, Capital 5,500 37.500 2 2 43,000 Goodwill Prince, Capital Robbins, Capital 5,500 37,500 5,500 3,850 1,650 Required Required B On January 2, 2021, Jeffrey invests $43,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction, 7 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 $12,000. 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. 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 Not income Interest $ $ 56,000 $ Total 12.000 (107,625) (95,625) 49,000 $ 2,625 $ Remainder to allocato Total allocation 0 $ 56.000 s 49,000 $ 2,625 $ (95,625)
