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

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The Prince Robbins Partnership Has The Following Capital Account Balances On January 1 2021 Prince Capital Robbins C 1 (55.58 KiB) Viewed 18 times

The Prince-Robbins partnership has the following capital account balances on January 1, 2021: Prince, Capital Robbins, Capital Prince is allocated 70 percent of all profits and losses with the remaining 30 percent assigned to Robbins after interest of 7 percent given to each partner based on beginning capital balances. $ 155,000 145,000 On January 2, 2021, Jeffrey invests $88.000 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 $28,000. 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. Net income Interest 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.) Remainder to allocate: Total allocation Answer is complete but not entirely correct. Prince $ 14,000 Robbins $ 9,240 $ (1,400) (840) 12,600 $ 8,400 Jeffrey 6,160 (560) $ 5,600 $ 28,000 (29,400) $ (1,400) 2,800 1,400 Total $