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

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 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.).

I am struggling. Please, help and complete the work thoroughly. Just fix all the wrong. Thank you!

Here is what I got.

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	Goodwill	15,000
		Tiger, capital		7,500 (Correct)
		Phil, capital		6,000 (Correct)
		Ernie, capital		1,500 (Correct)
		Cash (wrong)	90,000 (wrong)
		Sergio, capital (wrong)		90,000 (wrong)