#14.17

The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages:

Tiger (40%)	$	95,000
Phil (20%)		65,000
Ernie (40%)		80,000

Each of the following questions should be viewed independently.

1. If Sergio invests $120,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used.

2. If Sergio invests $90,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used.

3. If Sergio invests $108,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the goodwill method is used.

Required A Required B Required C If Sergio invests $120,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. (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 > Record the admission of new partner under bonus method. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal Required A Required B Required C If Sergio invests $90,000 in cash in the business for a 30 percent interest, what journal entry is recorded method is used. (If no entry is required for a transaction/event, select "No journal entry required" in the View transaction list Journal entry worksheet 1 > Record the admission of new partner under bonus method. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal Required A Required B Required If Sergio invests $108,000 in cash in the business for a 30 percent interest, what journal entry is recorded method is used. (If no entry is required for a transaction/event, select "No journal entry required" in the fi View transaction list Journal entry worksheet Record the entry for goodwill allocation, during the admission of a new partner. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal