How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Gerri A Harrison CFP EA Your Own Ques...
Gerri A Harrison CFP EA
Gerri A Harrison CFP EA, Financial Advisor
Category: Finance
Satisfied Customers: 252
Experience:  Over 10 years working with clients in the areas of personal finances and financial education.
21040383
Type Your Finance Question Here...
Gerri A Harrison CFP EA is online now
A new question is answered every 9 seconds

how to I record on the financial statements the purchase of

Resolved Question:

how to I record on the financial statements the purchase of a members interest in the llc?
Submitted: 6 years ago.
Category: Finance
Expert:  John Mark replied 6 years ago.
Hi, are you still looking for answer?
Customer: replied 6 years ago.
Yes. To be more specific, how do I record the excess paid to a member for his interest in a LLC?
Expert:  Gerri A Harrison CFP EA replied 6 years ago.

The purchase of part of an LLC by a new member will result in additional equity into the partnership. Using double entry accounting, your debit would be to the checking account if cash were received (or equipment if that was received) and your credit would be to the "Member Name" Equity account. This is not income to the LLC and should not be included on the profit and loss statement at all. It belongs on the balance sheet.

 

Hope this helps. If you have a specific question regarding this subject, please hit the need info button and ask. If you are satisfied with the answer, please hit the green accept button to close out the question and allow me to receive payment.

Gerri A Harrison CFP EA, Financial Advisor
Category: Finance
Satisfied Customers: 252
Experience: Over 10 years working with clients in the areas of personal finances and financial education.
Gerri A Harrison CFP EA and other Finance Specialists are ready to help you