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

Tiger (40% of profits and losses)	$	170,000
Phil (40%)		140,000
Ernie (20%)		155,000

Each of the following questions should be viewed independently.

a.	If Sergio invests $210,000 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.)

• Record the admission of new partner under bonus method.

Transaction General Entry Debit Credit

b.	If Sergio invests $175,000 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.)

• Recordtheadmissionofnewpartnerunderbonusmethod.

Transaction General EntryDebit Credit

c.	If Sergio invests $204,000 in cash in the business for a 30 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.)

• Recordtheentryforgoodwillallocation,duringtheadmissionofanewpartner.
• Recordtheinvestmentmadebythenewpartnerinthebusiness.
• Transaction General EntryDebitCredit