The prince-robbins partnership has the following capital account balances on january 1, 2018: prince, capital $ 150,000 robbins, capital 140,000 prince is allocated 60 percent of all profits and losses with the remaining 40 percent assigned to robbins after interest of 6 percent is given to each partner based on beginning capital balances. on january 2, 2018, jeffrey invests $85,000 cash for a 20 percent interest in the partnership. this transaction is recorded by the goodwill method. after this transaction, 6 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 $24,000.
prepare the journal entry to record jeffrey’s entrance into the partnership on january 2, 2018. determine the allocation of income at the end of 2018.