The Distance Plan partnership has the following capital at the beginning of the current year

Tiger (50% of profits and losses) $115,000

Phil (30%) $85,000

Ernie (20%) $100,000

If Sergio invests $145,000 in cash in the business for a 25 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.)

• Record the admission of new partner under bonus method.

Note: Enter debits before credits.

Transaction General Journal Debit Credit

1

If Sergio invests $90,000 in cash in the business for a 25 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.)

• Record the admission of new partner under bonus method.

Note: Enter debits before credits.

Transaction General Journal Debit Credit

1

If Sergio invests $105,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the entry for goodwill allocation, during the admission of a new partner.

Transaction General Journal Debit Credit

1

Record the investment made by the new partner in the business.

Transaction General Journal Debit Credit

2