ch 12-3 question 5

PLEASE FILL EVERY PART OF THE QUESTION, IF YOU'RE NOT WILLING TO THEN PLEASE DON'T ANSWER IT

LLC Net Income and Statement of Members' Equity

Intermedia, LLC, has three members: WYXT Partners, Lindsey Wilson, and Daily Sun Newspaper, LLC. On January 1, 2014, the three members had equity of $155,000, $40,000, and $95,000, respectively. WYXT Partners contributed an additional $40,000 to Intermedia, LLC, on June 1, 2014. Lindsey Wilson received an annual salary allowance of $89,900 during 2014. 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 net income for Intermedia, LLC, for 2014 was $230,000. Amounts equal to the salary and interest allowances were withdrawn by the members.

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.

c. Prepare a statement of members' equity for 2014.

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 WYXT Partners Lindsey Wilson Daily Sun Newspaper, LLC Total Salary allowance Interest allowance Remaining income (4:3:3) Net income