The Distance Plus partnership has the following capital balances at the beginning of the current year:

Tiger (40% of profits and losses)

$

80,000

Phil (40%)

50,000

Ernie (20%)

65,000

Each of the following questions should be viewed independently.

A. If Sergio invests $100,000 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.) Record the admission of new partner under bonus method.

Transaction	General Journal	Debit	Credit
Required A

B. If Sergio invests $75,000 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.) Record the admission of new partner under bonus method.

Transaction	General Journal	Debit	Credit
Required B

C. If Sergio invests $90,000 in cash in the business for a 30 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
Required C