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 following independent situations: 1. Lin purchased a 30% interest in Alert Medical, LLC, for $246,000. If an amount box does not require an entry, leave it blank. Cash fill in the blank b58d1603006f076_2 fill in the blank b58d1603006f076_3 Abrams, Member Equity fill in the blank b58d1603006f076_5 fill in the blank b58d1603006f076_6 Lipscomb, Member Equity fill in the blank b58d1603006f076_8 fill in the blank b58d1603006f076_9 Lin, Member Equity fill in the blank b58d1603006f076_11 fill in the blank b58d1603006f076_12 2. Lin purchased a 25% interest in Alert Medical, LLC, for $125,000. If an amount box does not require an entry, leave it blank. Cash fill in the blank 9745ef015076fd1_2 fill in the blank 9745ef015076fd1_3 Abrams, Member Equity fill in the blank 9745ef015076fd1_5 fill in the blank 9745ef015076fd1_6 Lipscomb, Member Equity fill in the blank 9745ef015076fd1_8 fill in the blank 9745ef015076fd1_9 Lin, Member Equity fill in the blank 9745ef015076fd1_11 fill in the blank 9745ef015076fd1_12
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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
| 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 following independent situations:
1. Lin purchased a 30% interest in Alert Medical, LLC, for $246,000. If an amount box does not require an entry, leave it blank.
| Cash | fill in the blank b58d1603006f076_2 | fill in the blank b58d1603006f076_3 | |
| Abrams, Member Equity | fill in the blank b58d1603006f076_5 | fill in the blank b58d1603006f076_6 | |
| Lipscomb, Member Equity | fill in the blank b58d1603006f076_8 | fill in the blank b58d1603006f076_9 | |
| Lin, Member Equity | fill in the blank b58d1603006f076_11 | fill in the blank b58d1603006f076_12 |
2. Lin purchased a 25% interest in Alert Medical, LLC, for $125,000. If an amount box does not require an entry, leave it blank.
| Cash | fill in the blank 9745ef015076fd1_2 | fill in the blank 9745ef015076fd1_3 | |
| Abrams, Member Equity | fill in the blank 9745ef015076fd1_5 | fill in the blank 9745ef015076fd1_6 | |
| Lipscomb, Member Equity | fill in the blank 9745ef015076fd1_8 | fill in the blank 9745ef015076fd1_9 | |
| Lin, Member Equity | fill in the blank 9745ef015076fd1_11 | fill in the blank 9745ef015076fd1_12 |
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