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The Distance Plus partnership has the following capital balances at the beginning of the current year: Tiger (508 of profits and losses) Phil (408) Ernie

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The Distance Plus partnership has the following capital balances at the beginning of the current year: Tiger (508 of profits and losses) Phil (408) Ernie (108) $100,000 70,000 85,000 Each of the following questions should be viewed independently. a. 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. b. If Sergio invests $80,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used c. If Sergio invests $90,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used

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