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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

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 $43,000. Prior to the revaluation, the equity balances for Abrams and Lipscomb were $153,000 and $216,600, respectively.

Required:
A. On December 31, provide the journal entry for the asset revaluation. Refer to the Chart of Accounts for exact wording of account titles.
B. On December 31, provide the journal entry for the bonus under the following independent situations (refer to the Chart of Accounts for exact wording of account titles):
1. Lin purchased a 30% interest in Alert Medical, LLC, for $236,800.
2. Lin purchased a 25% interest in Alert Medical, LLC, for $118,200.

CHART OF ACCOUNTS
Alert Medical, LLC
General Ledger
ASSETS
110 Cash
111 Petty Cash
112 Accounts Receivable
113 Allowance for Doubtful Accounts
114 Interest Receivable
115 Notes Receivable
116 Inventory
117 Office Supplies
118 Store Supplies
119 Prepaid Insurance
120 Land
123 Medical Equipment
124 Accumulated Depreciation-Medical Equipment
129 Asset Revaluations
133 Patent
LIABILITIES
210 Accounts Payable
211 Salaries Payable
213 Sales Tax Payable
214 Interest Payable
215 Notes Payable
EQUITY
310 Abrams, Member Equity
311 Abrams, Drawing
312 Lipscomb, Member Equity
313 Lipscomb, Drawing
314 Lin, Member Equity
315 Lin, Drawing
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Merchandise Sold
520 Salaries Expense
521 Advertising Expense
522 Depreciation Expense-Equipment
523 Delivery Expense
524 Repairs Expense
529 Selling Expenses
531 Rent Expense
533 Insurance Expense
534 Office Supplies Expense
535 Store Supplies Expense
536 Credit Card Expense
537 Cash Short and Over
538 Bad Debt Expense
539 Miscellaneous Expense
710 Interest Expense

Refer to the Chart of Accounts for exact wording of account titles. Scroll down to access pages 10 and 11 of the journal.

A. On December 31, provide the journal entry for the asset revaluation.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

B. On December 31, provide the journal entry for the bonus under the following independent situations:

1. Lin purchased a 30% interest in Alert Medical, LLC, for $236,800.

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

2. Lin purchased a 25% interest in Alert Medical, LLC, for $118,200.

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

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