Acc407 Advanced Accounting: P14-17 The Distance Plus partnership has the following capital balances

Acc407 Advanced Accounting Problem 14-17 The Distance Plus partnership has the following capital balances at the beginning of the current year: Tiger (50% of profits and losses) 85,000 Phil (30%) 60,000 Ernie (20%) 55,000 200,000 Each of the following questions should be viewed independently. a. If Sergio invest $100,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used. b. If Sergio invests $60,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used. c. If Sergio invests $72,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used.
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