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Problem 1 4 - 1 8 ( Algo ) ( LO 1 4 - 9 ) The Distance Plus partnership has the following capital balances

Problem 14-18(Algo)(LO 14-9)
The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and
oss percentages:
Each of the following questions should be viewed independently.
a. If Sergio invests $150,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus
method is used.
b. If Sergio invests $140,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus
method is used.
c. If Sergio invests $150,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the
goodwill method is used.
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