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%) $ 125,000 Phil (20%) 95,000 Ernie (40%) 110,000 1. If Sergio invests $150,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the goodwill method is used. When Sergio invests $150,000 in cash in the business for 30% interest. Goodwill Method: The investment by the new partner, Sergio implies a valuation calculated as follows