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

Tiger (40% of profits and losses)	$	140,000
Phil (40%)		110,000
Ernie (20%)		125,000

Each of the following questions should be viewed independently.

a.

If Sergio invests $180,000 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.)

b)

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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

c)

If Sergio invests $130,000 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.) 1) Record the entry for goodwill allocation, during the admission of a new partner. 2) Record the investment made by the new partner in the business.