The Prince-Robbins partnership has the following capital account balances on January 1, 2018: Prince, Capital $...

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The Prince-Robbins partnership has the following capital accountbalances on January 1, 2018: Prince, Capital $ 170,000 Robbins,Capital 160,000 Prince is allocated 70 percent of all profits andlosses with the remaining 30 percent assigned to Robbins afterinterest of 10 percent is given to each partner based on beginningcapital balances. On January 2, 2018, Jeffrey invests $97,000 cashfor a 20 percent interest in the partnership. This transaction isrecorded by the goodwill method. After this transaction, 10 percentinterest is still to go to each partner. Profits and losses willthen be split as follows: Prince (50 percent), Robbins (30percent), and Jeffrey (20 percent). In 2018, the partnershipreports a net income of $45,000. Prepare the journal entry torecord Jeffrey’s entrance into the partnership on January 2, 2018 .Determine the allocation of income at the end of 2018.

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The Prince-Robbins partnership has the following capital accountbalances on January 1, 2018: Prince, Capital $ 170,000 Robbins,Capital 160,000 Prince is allocated 70 percent of all profits andlosses with the remaining 30 percent assigned to Robbins afterinterest of 10 percent is given to each partner based on beginningcapital balances. On January 2, 2018, Jeffrey invests $97,000 cashfor a 20 percent interest in the partnership. This transaction isrecorded by the goodwill method. After this transaction, 10 percentinterest is still to go to each partner. Profits and losses willthen be split as follows: Prince (50 percent), Robbins (30percent), and Jeffrey (20 percent). In 2018, the partnershipreports a net income of $45,000. Prepare the journal entry torecord Jeffrey’s entrance into the partnership on January 2, 2018 .Determine the allocation of income at the end of 2018.