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

Tiger (40% of profits and losses) $ 180,000

Phil (30%) 150,000

Ernie (30%) 165,000

Each of the following questions should be viewed independently.

a. If Sergio invests $190,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used.

If Sergio invests $120,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used. c. If Sergio invests $130,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the goodwill method is used.