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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 medical equipment being increased by $21,000. Prior to the revaluation, the equity balances for Abrams and Lipscomb were $202,000 and $231,000, respectively. a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank. Medical Equipment v 21,000 Abrams, Member Equity V 8,400 Lipscomb, Member Equity v 12,600 Feedback Check My Work b. Provide the journal entry for the bonus under the following independent situations: 1. Lin purchased a 30% interest in Alert Medical, LLC, for $259,000. If an amount box does not require an entry, leave it blank. Cash v 259,000 V Abrams, Member Equity v 20,800 X Lipscomb, Member Equity 31,200 Lin, Member Equity v 207,000 X Feedback Check My Work 2. Lin purchased a 25% interest in Alert Medical, LLC, for $132,000. If an amount box does not require an entry, leave it blank. Cash v 132,000 V Abrams, Member Equity v 16,100 x Lipscomb, Member Equity 24,150 X Lin, Member Equity v 172,250

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 medical equipment being increased by $21,000. Prior to the revaluation, the equity balances for Abrams and Lipscomb were $202,000 and $231,000, respectively. a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank. Medical Equipment v 21,000 Abrams, Member Equity V 8,400 Lipscomb, Member Equity v 12,600 Feedback Check My Work b. Provide the journal entry for the bonus under the following independent situations: 1. Lin purchased a 30% interest in Alert Medical, LLC, for $259,000. If an amount box does not require an entry, leave it blank. Cash v 259,000 V Abrams, Member Equity v 20,800 X Lipscomb, Member Equity 31,200 Lin, Member Equity v 207,000 X Feedback Check My Work 2. Lin purchased a 25% interest in Alert Medical, LLC, for $132,000. If an amount box does not require an entry, leave it blank. Cash v 132,000 V Abrams, Member Equity v 16,100 x Lipscomb, Member Equity 24,150 X Lin, Member Equity v 172,250

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $21,000. Prior to the revaluation, the equity balances for Abrams and Lipscomb were $202,000 and $231,000, respectively. a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank. Medical Equipment 21,000 Abrams, Member Equity v 8,400 Lipscomb, Member Equity V 12,600 Feedback Check My Work b. Provide the journal entry for the bonus under the following independent situations: 1. Lin purchased a 30% interest in Alert Medical, LLC, for $259,000. If an amount box does not require an entry, leave it blank. Cash v 259,000 Abrams, Member Equity 20,800 Lipscomb, Member Equity v 31,200 X Lin, Member Equity v 207,000 Feedback Check My Work 2. Lin purchased a 25% interest in Alert Medical, LLC, for $132,000. If an amount box does not require an entry, leave it blank. Cash v 132,000 Abrams, Member Equity v 16,100 Lipscomb, Member Equity 24,150 X Lin, Member Equity v 172,250 X Feedback
Transcribed Image Text: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 $21,000. Prior to the revaluation, the equity balances for Abrams and Lipscomb were $202,000 and $231,000, respectively. a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank. Medical Equipment 21,000 Abrams, Member Equity v 8,400 Lipscomb, Member Equity V 12,600 Feedback Check My Work b. Provide the journal entry for the bonus under the following independent situations: 1. Lin purchased a 30% interest in Alert Medical, LLC, for $259,000. If an amount box does not require an entry, leave it blank. Cash v 259,000 Abrams, Member Equity 20,800 Lipscomb, Member Equity v 31,200 X Lin, Member Equity v 207,000 Feedback Check My Work 2. Lin purchased a 25% interest in Alert Medical, LLC, for $132,000. If an amount box does not require an entry, leave it blank. Cash v 132,000 Abrams, Member Equity v 16,100 Lipscomb, Member Equity 24,150 X Lin, Member Equity v 172,250 X Feedback
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