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

Each of the following questions should be viewed independently.

1. If Sergio invests $170,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used.

Tiger (40% of profits and losses) Phil (20%) Ernie (40%) Peter som of profits and losses) $185,000 $ 155,000 125,000 140,000 Required A Required B Required If Sergio invests $170,000 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.) View transaction list View journal entry worksheet General Journal Credit No 1 Transaction 1 Debit 170,000 Cash Tiger, capital Phil, capital Emnie, capital Sergio, capital 126,000