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.

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.

Part B needs to be answered, here is my answer to part B. It is wrong. Thanks! Also, Part C needs to be answered as well.

No	Transaction	General Journal	Debit	Credit
1	1	Cash	80,000
		Tiger, capital		-3,750
		Phil, capital		-1,500
		Ernie, capital		-375
		Sergio, capital

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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

No	Transaction	General Journal	Debit	Credit
1	1	Cash
		Tiger, capital
		Phil, capital
		Ernie, capital
		Cash
		Sergio, capital