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

Tiger (50% of profits & losses)	$175,000
Phil (30%)	$145,000
Ernie (20%)	$160,000

Each of the following questions should be viewed independently.

a. If Sergio invests $190,000 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.) **ANSWER IS CORRECT**

Cash	$190,000
Tiger, Capital		$11,250
Phil, Capital		$6,750
Ernie, Capital		$4,500
Sergio, Capital		$167,500

b. If Sergio invests $150,000 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.) **ANSWERS GIVEN ARE CORRECT**

Cash	$150,000
Tiger, Capital		NEED ANSWER
Phil, Capital		NEED ANSWER
Ernie, Capital		NEED ANSWER
Sergio, Capital		$157,500

c. If Sergio invests $170,000 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.)

Goodwill	NEED ANSWER
Tiger, Capital		NEED ANSWER
Phil, Capital		NEED ANSWER
Ernie, Capital		NEED ANSWER

Cash	$170,000
Sergio, Capital	$170,000