Accounting (Text Only)
Accounting (Text Only)
26th Edition
ISBN: 9781285743615
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 12, Problem 12.14EX

a.

To determine

Limited Liability Company

It is that form of organization which is formed as a legal entity that provides limited liability to the owners. It has a common seal.

To record:  The journal entry for the asset revaluation.

b. 1

To determine

To provide: The journal entry

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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…
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 $20,000. Prior to the revaluation, the equity balances for Abrams and Lipscomb were $192,000 and $220,000, respectively. a.  Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank.   Medical Equipment  fill in the blank 2ad938f58fb4044_2 fill in the blank 2ad938f58fb4044_3   Abrams, Member Equity  fill in the blank 2ad938f58fb4044_5 fill in the blank 2ad938f58fb4044_6   Lipscomb, Member Equity  fill in the blank 2ad938f58fb4044_8 fill in the blank 2ad938f58fb4044_9 b.  Provide the journal entry for the bonus under the…
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%…

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Accounting (Text Only)

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