The Distance Plus partnership has the following capital balances at the beginning of the current year Tiger (40 of profits and losses) $ 110,000 Phil (40 ) 80,000 Ernie (20 ) 95,000 Each of the following questions should be viewed independently a If Sergio invests $130,000 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 ) b If Sergio invests $120,000 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 ) c If Sergio invests $75,000 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 )

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Posted on Jul 29, 2024

The Distance Plus partnership has the following capital balances at the beginning of the current year: Tiger (40% of profits and losses) $ 110,000 Phil

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


Tiger (40% of profits and losses)	$	110,000
Phil (40%)		80,000
Ernie (20%)		95,000

Each of the following questions should be viewed independently.

If Sergio invests $130,000 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.)

If Sergio invests $120,000 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.)

c.	If Sergio invests $75,000 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.)