The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages: Tiger (40%) Phil (38%) Ernie (30%) $ 60, eee 30,eee 45, eee Each of the following questions should be viewed Independently. a. If Sergio Invests $60,000 in cash in the business for a 20 percent Interest, what journal entry is recorded? Assume that the bonus method is used. b. If Sergio Invests $30,000 in cash in the business for a 20 percent Interest, what journal entry is recorded? Assume that the bonus method is used. c. If Sergio Invests $40,000 in cash in the business for a 20 percent Interest, what journal entry is recorded? Assume that the goodwill method is used. Complete this question by entering your answers in the tabs below. Required A Required B Required If Sergio invests $60,000 in cash in the business for a 20 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.) View transaction list Journal entry worksheet Record the admission of new partner under bonus method. Note: Enter debits before credits. Transaction General Journal Credit Debit 60.000 1 Cash Sergio, capital Tiger, capital Phil, capital Ernie, capital Problem 9-18 (Algo) (LO 9-9) The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages: Tiger (40%) Phil (30%) Ernie (30%) $ 60, eee 3e,eee 45, eee Each of the following questions should be viewed independently. a. If Sergio Invests $60,000 In cash in the business for a 20 percent Interest, what journal entry is recorded? Assume that the bonus method is used. b. If Sergio Invests $30,000 in cash in the business for a 20 percent Interest, what journal entry is recorded? Assume that the bonus method is used c. If Sergio Invests $40,000 in cash in the business for a 20 percent Interest, what journal entry is recorded? Assume that the goodwill method is used. Complete this question by entering your answers in the tabs below. Required A Required B Required c If Sergio invests $30,000 in cash in the business for a 20 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.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 1 Tiger, capital Phil, capital Ernie, capital Cash Sergio, capital 1.200 900 900 Problem 9-18 (Algo) (LO 9-9) The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages: Tiger (40%) Phil (30%) Ernie (30%) $ 60, eee 30, eee 45, eee Each of the following questions should be viewed independently. a. If Sergio Invests $60,000 In cash in the business for a 20 percent Interest, what Journal entry is recorded? Assume that the bonus method is used. b. If Sergio Invests $30,000 in cash in the business for a 20 percent Interest, what journal entry is recorded? Assume that the bonus method is used. c. If Sergio Invests $40,000 in cash in the business for a 20 percent Interest, what journal entry is recorded? Assume that the goodwill method is used. Complete this question by entering your answers in the tabs below. Required A Required B Required If Sergio invests $40,000 in cash in the business for a 20 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.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 1 Goodwill 25.000 10,000 Tiger, capital Phil, capital Ernie, capital 7,500 7.500
