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

Tiger (50% of profits and losses)

$

70,000

Phil (40%)

40,000

Ernie (10%)

55,000

If Sergio invests $60,000 in cash in the business for a 20 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.)