Problem 14-18 The Distance Plus partnership has the following capital balances at the beginning of the current year:

Tiger (40% of profits and losses) $ 60,000

Phil (30%) 30,000

Ernie (30%) 45,000

Each of the following questions should be viewed independently.

a. If Sergio invests $60,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Record the admission of new partner under bonus method.

b. If Sergio invests $30,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Record the admission of new partner under bonus method.

c. If Sergio invests $40,000 in cash in c. the business for a 20 percent interest, what journal entry is recorded? Record the entry for goodwill allocation, during the admission of a new partner.