Exploit Media, LLC, has three members: WACS Partners, Elyse OReilly, and Encounter Newspaper, LLC. On January 1, 20Y2, the three members had equity of $207,400, $43,000, and $165,200, respectively. WACS Partners contributed an additional $49,800 to Exploit Media, LLC, on June 1, 20Y2. Elyse OReilly received an annual salary allowance of $50,700 during 20Y2. The members equity accounts are also credited with 10% interest on each members 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 Exploit Media, LLC, for 20Y2 were $1,186,500, 858,700 and $327,800 respectively. Amounts equal to the salary and interest allowances were withdrawn by the members.

Required:

a.	Determine the division of income among the three members. If an amount box does not require an entry, leave it blank.
b.	Prepare the journal entry to close the revenues, expenses, and withdrawals to the individual member equity accounts. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
c.	Prepare a statement of members equity for 20Y2. A decrease to members equity should be entered as a negative amount. If an amount box does not require an entry, leave it blank.
d.	What are the advantages of an income-sharing agreement for the members of this LLC?

a. Determine the division of income among the three members. If an amount box does not require an entry, leave it blank.

Question not attempted.

Score: 0/54

Schedule of Division of Income

1		WACS Partners	Elyse OReilly	Encounter Newspaper, LLC	Total
2	Salary allowance
3	Interest allowance
4	Remaining income (4:3:3)
5	Net income

b. On December 31, prepare the journal entry to close the revenues, expenses, and withdrawals to the individual member equity accounts. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

Question not attempted.

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JOURNAL

ACCOUNTING EQUATION

Score: 0/135

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Closing Entries
2
3
4
5
6
7
8
9
10
11
12

c. Prepare a statement of members equity for 20Y2. A decrease to members equity should be entered as a negative amount. If an amount box does not require an entry, leave it blank.

Question not attempted.

Score: 0/70

Exploit Media, LLC

Statement of Members Equity

For the Year Ended December 31, 20Y2

1		WACS Partners	Elyse OReilly	Encounter Newspaper, LLC	Total
2	Balances, January 1, 20Y2
3	Capital additions
4	Net income for the year
5	Member withdrawals
6	Balances, December 31, 20Y2