GGIO 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, 2012, the three members had equity of $200,000, $40,000, and $160,000, respectively. WLKT Partners contributed an additional $50,000 to Marvel Media, LLC, on June 1, 2012. Madison Sanders received an annual salary allowance of $55,000 during 2072. The members' equity accounts are also credited with 10%. 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 2012 were $1,260,000, $900,000, and $360,000, 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 Amounts equal to the salary and interest allowances were withdrawn by the members.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 WLKT Partners Madison Sanders Observer Newspaper, LLC Total $ 55.000 55.000 Salary allowance Interest allowance 20,000 4,000 16,000 40,000 79,500 106,000 79.500 265.000 Remaining income (4:33) 126,000 95.500 138,500 360,000 Net Income Feedback Check My Work eBook Calculator 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 bo does not require an entry, leave it blank. (1) Revenues 1,260,000 Expenses 900,000 WLKT Partners, Member Equity 126.000 138.00 Madison Sanders, Member Equity Observer Newspaper, LLC, Member Equity 95.500 (2) 20,000 9,000 WLKT Partners, Member Equity Madison Sanders, Member Equity Observer Newspaper, LLC, Member Equity v WLKT Partners, Drawing 16.000 20.000 Madison Sanders, Drawing 59.000 Observer Newspaper, LLC, Drawing 16.000 Feedback Check My Work to the ber egyity accounts. Close the drawing accounts to the respective equity accounts. c. Prepare a statement of members' equity for 20Y2. If an amount box does not require an entry, leave it blank or enter zero. Marvel Media, LLC Statement of Members' Equity For the Year Ended December 31, 2012 WLKT Partners Madison Nelson Observer Newspaper, LLC X X Total Balances, January 1, 2012 Capital additions 50,000 50.000 Net Income for the year 126,000 138,500 95.500 360,000 X X X Member withdrawals 20,000 59,000 16.000 95,000 Balances, December 31, 2012 X X Feedback Check My Wor c. Set up a column for each member and a total column. Add additional investments and net income allocations to beginning capital balances, and subtract withdrawals to obtain ending capital for each partner and the total equity, d What are the advantages of an income-sharing agreement for the members of this LLC