The Prince Robbins Partnership Has The Following Capital Account Balances On January 1 2021 Prince Capital Robbins C 1 (20.59 KiB) Viewed 31 times
The Prince Robbins Partnership Has The Following Capital Account Balances On January 1 2021 Prince Capital Robbins C 2 (20.64 KiB) Viewed 31 times
The Prince-Robbins partnership has the following capital account balances on January 1, 2021: Prince, Capital Robbins, Capital $ 155,000 145,000 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 $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.
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.) Net Income Interest Remainder to allocate Total allocation $ Prince Robbins 0 $ 0 $ Jeffrey 0 Total $ 440,000 0 440,000 $ $ 0 440,000
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