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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
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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The Prince-Robbins partnership has the following capital account balances on January 1, 2024: $ 90,000 80,000 Prince, Capital Robbins, Capital 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, 2024, 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 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 B Prepare 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 list Journal entry worksheet 1 2 Record the entry for goodwill allocation, during the admission of a new partner.
Transcribed Image Text:The Prince-Robbins partnership has the following capital account balances on January 1, 2024: $ 90,000 80,000 Prince, Capital Robbins, Capital 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, 2024, 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 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 B Prepare 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 list Journal entry worksheet 1 2 Record the entry for goodwill allocation, during the admission of a new partner.
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