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 $28,000. Prior to the revaluation, the equity balances for Abrams and Lipscomb were $269,000 and $308,000, respectively.

a. Provide the journal entry for the asset revaluation. For a compound transaction, if an amount box does not require an entry, leave it blank.

	Medical Equipment	fill in the blank 919bb0ff9f8bfd5_2	fill in the blank 919bb0ff9f8bfd5_3
	Abrams, Member Equity	fill in the blank 919bb0ff9f8bfd5_5	fill in the blank 919bb0ff9f8bfd5_6
	Lipscomb, Member Equity	fill in the blank 919bb0ff9f8bfd5_8	fill in the blank 919bb0ff9f8bfd5_9

Feedback

a. Adjust the medical equipment and adjust each member's equity account in their income-sharing ratio.

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

1. Lin purchased a 30% interest in Alert Medical, LLC, for $345,000. For a compound transaction, if an amount box does not require an entry, leave it blank.

	Cash	fill in the blank 580ba707005bfd7_2	fill in the blank 580ba707005bfd7_3
	Abrams, Member Equity	fill in the blank 580ba707005bfd7_5	fill in the blank 580ba707005bfd7_6
	Lipscomb, Member Equity	fill in the blank 580ba707005bfd7_8	fill in the blank 580ba707005bfd7_9
	Lin, Member Equity	fill in the blank 580ba707005bfd7_11	fill in the blank 580ba707005bfd7_12

Feedback

b.1. Determine the total capital, including the new contribution. Calculate the new member's share of the total capital. If the new member's contribution exceeds his share of the capital, the bonus goes to the existing members. If the new member's share of the capital exceeds the contribution, the bonus goes to the new member.

2. Lin purchased a 25% interest in Alert Medical, LLC, for $175,000. For a compound transaction, if an amount box does not require an entry, leave it blank.

		fill in the blank fd7d060c7ffcf95_2	fill in the blank fd7d060c7ffcf95_3
		fill in the blank fd7d060c7ffcf95_5	fill in the blank fd7d060c7ffcf95_6
		fill in the blank fd7d060c7ffcf95_8	fill in the blank fd7d060c7ffcf95_9
		fill in the blank fd7d060c7ffcf95_11	fill in the blank fd7d060c7ffcf95_12