The Prince-Robbins partnership has the following capital account balances on January 1, 2024:$ 90,00080,000Prince, CapitalRobbins, CapitalPrince is allocated 60 percent of all profits and losses with the remaining 40 percent assigned to Robbins after interest of 9 percent isgiven to each partner based on beginning capital balances.On January 2, 2024, Jeffrey invests $49,000 cash for a 20 percent interest in the partnership. This transaction is recorded by thegoodwill method. After this transaction, 9 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 2024, the partnership reports a net income of $19,000.Required:a. Prepare the journal entry to record Jeffrey's entrance into the partnership on January 2, 2024.b. Prepare a schedule showing how the 2024 net income allocation to the partners should be determined.Complete this question by entering your answers in the tabs below.Required A Required BPrepare the journal entry to record Jeffrey's entrance into the partnership on January 2, 2024.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.View transaction listJournal entry worksheet12Record the entry for goodwill allocation, during the admission of a new partner.

Computation of goodwill : Jeffrey's investment = $49,000 Goodwill = (Jeffrey's investment/interest…

Prince, Capital Robbins, Capital Prince is allocated 60 percent of all profits and losses with the remaining 4 given to each partner based on beginning capital balances. $ 90,000 80,000 On January 2, 2024, Jeffrey invests $49,000 cash for a 20 percent interes goodwill method. After this transaction, 9 percent interest is still to go to ea Prince (50 percent), Robbins (30 percent), and Jeffrey (20 percent). In 202- Required: a. Prepare the journal entry to record Jeffrey's entrance into the partnersh b. Prepare a schedule showing how the 2024 net income allocation to the Complete this question by entering your answers in the tabs below. Required A Required B

Prince, Capital Robbins, Capital Prince is allocated 60 percent of all profits and losses with the remaining 4 given to each partner based on beginning capital balances. $ 90,000 80,000 On January 2, 2024, Jeffrey invests $49,000 cash for a 20 percent interes goodwill method. After this transaction, 9 percent interest is still to go to ea Prince (50 percent), Robbins (30 percent), and Jeffrey (20 percent). In 202- Required: a. Prepare the journal entry to record Jeffrey's entrance into the partnersh b. Prepare a schedule showing how the 2024 net income allocation to the Complete this question by entering your answers in the tabs below. Required A Required B

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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