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 $36,000. Prior to the revaluation, the equity balances for Abrams and Lipscomb were $346,000 and $396,000, respectively.

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

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

1. Lin purchased a 30% interest in Alert Medical, LLC, for $443,000. If an amount box does not require an entry, leave it blank.

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2. Lin purchased a 25% interest in Alert Medical, LLC, for $226,000. If an amount box does not require an entry, leave it blank.

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Lewis, Zapata, and Fowler share equally in net income and net losses. After the partnership sells all assets for cash, divides the losses on realization, and pays the liabilities, the balances in the capital accounts are as follows: Lewis, $45,000 Cr.; Zapata, $99,000 Cr.; Fowler, $28,800 Dr.

a. What term is applied to the debit balance in Fowler's capital account?

b. What is the amount of cash on hand? $fill in the blank 60c854f5cfb301c_2

c. Journalize the transaction that must take place for Lewis and Zapata to receive cash in the liquidation process equal to their capital account balances. If an amount box does not require an entry, leave it blank.

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