LLC Net Income and Statement of Members' Equity Marvel Media, LLC, has three members: WLKT Partners,...

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LLC Net Income and Statement of Members' Equity Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 20Y2, the three members had equity of $180,000, $45,000, and $110,000, respectively. WLKT Partners contributed an additional $50,000 to Marvel, Media, LLC, on June 1, 20Y2. Madison Sanders received an annual salary allowance of $104,400 during 20Y2. The members' equity accounts are also credited with 12% interest on each member's January 1 capital balance. Any remaining income is to be shared in the ratio of 4:3:3 among the three members. The revenues, expenses, and net income for Marvel Media, LLC, for 20Y2 were $747,264, $477,264 and $270,000 respectively. Amounts equal to the salary and interest allowances were withdrawn by the members. a. Determine the division of income among the three members. If an amount box does not require an entry, leave it blank. Schedule of Division of Income c. Prepare a statement of members' equity for 20Y2. If an amount box does not require an entry, leave it blank. Marvel Media, LLC Statement of Members' Equity For the Year Ended December 31, 20Y2 WLKT Madison Observer Newspaper, Total Partners Sanders LLC Balances, January 1, 20Y2 180,000 45,000 110,000 335,000 Capital additions 50,000 50,000 230,000 45,000 110,000 385,000 Net income for the year 71,760 147,420 50,820 270,000 301,760 192,420 160,820 655,000 Member withdrawals 21,600 109,800 13,200 144,600 Balances, December 31, 20Y2 280,160 82,620 147,620 510,400 d What are the advantages of an income-sharing agreement for the members of this LLC? Without an income-sharing agreement, each member would total earnings, or one-third each. Separate contributions can formula. be credited with an equal proportion of the be acknowledged in the income-sharing Ch 12 - HW Extra Credit (Optional) Remaining income 50,160 37,620 37,620 125,400 ? (4:3:3) Net income 71,760 147,420 50,820 270,000 b. Prepare the journal entries to close the (1) net income and (2) withdrawals to the individual member equity accounts. For a compound entry, if an amount box does not require an entry, leave it blank. (1) Revenues Expenses WLKT Partners, Member Equity Madison Sanders, Member Equity Observer Newspaper, LLC, Member Equity 350,000 X X 106,520 X 168,090 X 75,390 X > (2) Madison Sanders, Drawing X 270,000 Observer Newspaper, LLC, Drawing X X Observer Newspaper, LLC, Member Equity X 50,820 X WLKT Partners, Member Equity X 71,760 X Madison Sanders, Member Equity X 147,420 X Income Summary X X c. Prepare a statement of members' equity for 20Y2. If an amount box does not require an entry, leave it blank. Marvel Media, LLC Statement of Members' Equity Check My Work 3 more Check My Work uses remaining. Previous Next > Assignment Score: 50.41% All work saved. Save and Exit Submit Assignment for Grading LLC Net Income and Statement of Members' Equity Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 20Y2, the three members had equity of $180,000, $45,000, and $110,000, respectively. WLKT Partners contributed an additional $50,000 to Marvel, Media, LLC, on June 1, 20Y2. Madison Sanders received an annual salary allowance of $104,400 during 20Y2. The members' equity accounts are also credited with 12% interest on each member's January 1 capital balance. Any remaining income is to be shared in the ratio of 4:3:3 among the three members. The revenues, expenses, and net income for Marvel Media, LLC, for 20Y2 were $747,264, $477,264 and $270,000 respectively. Amounts equal to the salary and interest allowances were withdrawn by the members. a. Determine the division of income among the three members. If an amount box does not require an entry, leave it blank. Schedule of Division of Income c. Prepare a statement of members' equity for 20Y2. If an amount box does not require an entry, leave it blank. Marvel Media, LLC Statement of Members' Equity For the Year Ended December 31, 20Y2 WLKT Madison Observer Newspaper, Total Partners Sanders LLC Balances, January 1, 20Y2 180,000 45,000 110,000 335,000 Capital additions 50,000 50,000 230,000 45,000 110,000 385,000 Net income for the year 71,760 147,420 50,820 270,000 301,760 192,420 160,820 655,000 Member withdrawals 21,600 109,800 13,200 144,600 Balances, December 31, 20Y2 280,160 82,620 147,620 510,400 d What are the advantages of an income-sharing agreement for the members of this LLC? Without an income-sharing agreement, each member would total earnings, or one-third each. Separate contributions can formula. be credited with an equal proportion of the be acknowledged in the income-sharing Ch 12 - HW Extra Credit (Optional) Remaining income 50,160 37,620 37,620 125,400 ? (4:3:3) Net income 71,760 147,420 50,820 270,000 b. Prepare the journal entries to close the (1) net income and (2) withdrawals to the individual member equity accounts. For a compound entry, if an amount box does not require an entry, leave it blank. (1) Revenues Expenses WLKT Partners, Member Equity Madison Sanders, Member Equity Observer Newspaper, LLC, Member Equity 350,000 X X 106,520 X 168,090 X 75,390 X > (2) Madison Sanders, Drawing X 270,000 Observer Newspaper, LLC, Drawing X X Observer Newspaper, LLC, Member Equity X 50,820 X WLKT Partners, Member Equity X 71,760 X Madison Sanders, Member Equity X 147,420 X Income Summary X X c. Prepare a statement of members' equity for 20Y2. If an amount box does not require an entry, leave it blank. Marvel Media, LLC Statement of Members' Equity Check My Work 3 more Check My Work uses remaining. Previous Next > Assignment Score: 50.41% All work saved. Save and Exit Submit Assignment for Grading