Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $29,000. Prior to the revaluation, the equity balances for Abrams and Lipscomb were $278,000 and $319,000, respectively.

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

Medical Equipment
Abrams, Member Equity
Lipscomb, Member Equity

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

1. Lin purchased a 30% interest in Alert Medical, LLC, for $357,000. If an amount box does not require an entry, leave it blank.

Cash
Abrams, Member Equity
Lipscomb, Member Equity
Lin, Member Equity

2. Lin purchased a 25% interest in Alert Medical, LLC, for $182,000. If an amount box does not require an entry, leave it blank.

Cash
Abrams, Member Equity
Lipscomb, Member Equity
Lin, Member Equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2020

Authors: Jeanette Landin

6th Edition

1260247961, 9781260247961

More Books

Students also viewed these Accounting questions

Question

Describe the problems in the administration of disciplinary action.

Answered: 1 week ago

Question

Explain discipline and disciplinary action.

Answered: 1 week ago