Admitting a New LLC Member With Bonus Alert Medical, LLC, consists of two doctors, Abrams and Lipscomb, who share in all income and losses according to a 2:3 income-sharing ratio. Dr. Lin has been asked to join the LLC. Prior to admitting Lin, the assets of Alert Medical were revalued to reflect their current market values. The revaluation resulted in medical equipment being increased by $18,000. Prior to the revaluation, the equity balances for Abrams and Lipscomb were $173,000 and $198,000, respectively. a.  Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank.     fill in the blank df2363f53fc8ff1_2 fill in the blank df2363f53fc8ff1_3     fill in the blank df2363f53fc8ff1_5 fill in the blank df2363f53fc8ff1_6     fill in the blank df2363f53fc8ff1_8 fill in the blank df2363f53fc8ff1_9

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Admitting a New LLC Member With Bonus

Alert Medical, LLC, consists of two doctors, Abrams and Lipscomb, who share in all income and losses according to a 2:3 income-sharing ratio. Dr. Lin has been asked to join the LLC. Prior to admitting Lin, the assets of Alert Medical were revalued to reflect their current market values. The revaluation resulted in medical equipment being increased by $18,000. Prior to the revaluation, the equity balances for Abrams and Lipscomb were $173,000 and $198,000, respectively.

a.  Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank.

    fill in the blank df2363f53fc8ff1_2 fill in the blank df2363f53fc8ff1_3
    fill in the blank df2363f53fc8ff1_5 fill in the blank df2363f53fc8ff1_6
    fill in the blank df2363f53fc8ff1_8 fill in the blank df2363f53fc8ff1_9

b.  Provide the journal entry for the bonus under the following independent situations:

1.  Lin purchased a 30% interest in Alert Medical, LLC, for $222,000. If an amount box does not require an entry, leave it blank.

    fill in the blank 9b2bef008fe5fc6_2 fill in the blank 9b2bef008fe5fc6_3
    fill in the blank 9b2bef008fe5fc6_5 fill in the blank 9b2bef008fe5fc6_6
    fill in the blank 9b2bef008fe5fc6_8 fill in the blank 9b2bef008fe5fc6_9
    fill in the blank 9b2bef008fe5fc6_11 fill in the blank 9b2bef008fe5fc6_12

2.  Lin purchased a 25% interest in Alert Medical, LLC, for $113,000. If an amount box does not require an entry, leave it blank.

    fill in the blank ff2caa01bffbfa6_2 fill in the blank ff2caa01bffbfa6_3
    fill in the blank ff2caa01bffbfa6_5 fill in the blank ff2caa01bffbfa6_6
    fill in the blank ff2caa01bffbfa6_8 fill in the blank ff2caa01bffbfa6_9
    fill in the blank ff2caa01bffbfa6_11 fill in the blank ff2caa01bffbfa6_12
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