The Prince-Robbins partnership has the following capital account balances on January 1, 2018:

Prince is allocated 60 percent of all profits and losses with the remaining 40 percent assigned to Robbins after interest of 8 percent is given to each partner based on beginning capital balances.

On January 2, 2018, Jeffrey invests $31,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction, 8 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 2018, 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, 2018.

(b) Determine the allocation of income at the end of 2018.

\fRequired A Required B Prepare the journal entry to record Jeffrey's entrance into the partnership on January 2, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 > Record the entry for goodwill allocation, during the admission of a new partner. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journalRequired A Required B Prepare the journal entry to record Jeffrey's entrance into the partnership on January 2, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet