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

Tiger (50% of profits and losses) $ 85,000

Phil (30%) 60,000

Ernie (20%) 55,000

Each of the following questions should be viewed independently.

1. If Sergio invests $100,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.

2. If Sergio invests $60,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.

3. If Sergio invests $72,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used.

1(a). Journal Entry . Record the admission of a new partner under bonus method.

2(b).Journal entry . Record the admission of a new partner under bonus method.

3(C).Journal Entry. Record the entry for goodwill allocation,during the the admission of a new partner.

Record the investment of the new partner in the business.