Question

The Prince-Robbins partnership has the following capital account balances on January 1, 2018 Prince, Capital Robbins, Capital $ 90,000 80,000 Prince is allocated 60 percent of all profits and losses with the remaining 40 percent assigned to Robbins after interest of 9 percent is given to each partner based on beginning capital balances. On January 2, 2018, Jeffrey invests $49,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill 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 2018, the partnership reports a net income of $19,000 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 Journal entry worksheet Record the entry for goodwill allocation, during the admission of a new partner Note: Enter debits before credits. General Journal Credit Transaction Debit Journal entry worksheet Record the cash received from new partner. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Income Allocation Prince Robbins Jeffrey

Answer 1

arsa Debit Goodesu 26,00 pine, αρ'w Cs 26,000 K 60% ) Rong acid (42600x 40% ) lobi

INCOME ALLOCATION :

PRINCE : $ 7,979

ROBBING : $ 7,221

JEFFREY : $ 3,800

blancu に3050) |610) ca'*) 50 30. 2O 50x50 ) | (3050x30 〉 | (3050, 20 ) loo GooD = 245,000 Share Gmlaj) 24 26000 [mbc 2 45000-5219,ca ニ (396000 60. ) _ 5 105,600 Pance z 900α 22050