If sergio invests $100,000 in cash in the business for a 25 percent interest, what journal entry is recorded? assume that the bonus method is used.

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
a. If Sergio invests $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.
a. Cash $100,000
Tiger's capital 12,500
Phil's capital 7,500
Ernie's capital 5,000
Sergio's capital 75,000

b. Cash $60,000
Tiger's capital 2,500
Phil's capital 1,500
Ernie's capital 1,000
Sergio's capital 65,000

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They are enjoying the advantage of independence while running their own small business. they can go where they want when they want to, because they control the restaurant's hours. they can also make time for life emergencies, and set the hours to be when they do the best cooking.