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

Prince, Capital	$	55,000
Robbins, Capital		45,000

Prince is allocated 80 percent of all profits and losses with the remaining 20 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 $28,000 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 $8,000.

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.

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

2. Record the cash received from new partner.

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				0
				$0
Remainder to allocate				0
Total allocation	$0	$0	$0	$0