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

Tiger (50% of profits and losses)	$	100,000
Phil (40%)		70,000
Ernie (10%)		85,000

Each of the following questions should be viewed independently.

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.

1. Record the admission of new partner under bonus method.

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.

2. Record the admission of new partner under bonus method.

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.

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.