Instructions Marvel Media, LLC, has three members WIKT Partners, Madison Sanders, and Observer Newspaper LLC On May 1, 2012, the three members had equity of 5217 600, 540,300 and 5167.700 empectively W.KT Partners comitatod an additional $60,000 to Marvel Media LLC on June 2012 Macon Sandersonved an annual tary allowance of 54,00 Guing 2072. The member equity accounts are also credited with 90% nterest on each members January capital balance Any remaining incomes to be shared in the ratio of 4 33 among the three member members. The experies, and put income for Marvel Media LLC, for 2012 were $1.236 800, sod 700 and $340,00 rspectively Amourts equal to the salary and interest allowances were witby the members Required: A Determine the division of income among the three members B. Prepare the journal entre to close the net income and withdrawals to the individual member equity account Refer to the Chart of Account for exact wording of account titles Prepare a statement of members equity for 2012 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 Schedule of Division of Income 1 WLKT Partners Madison Sanders Observer Newspaper, LLC Total 2 Salary allowance 1 Interest allowance + Remaining income (4:33) 5 Net income B Prepare the jouma entries to close the net noome and withdrawals to the individual member equity accounta. Refer to the Chart of Accounts for eact wording of account this TAGE 10 JOURNAL DATE DESCRIPTION POST RER DENT CREDIT ACCONTAR CUATION ASSETS LABILITIES COUTY Closing Entries 2 3 5 19 12 Prepare a statement of members equity for 2012 Marvel Media, LLC Statement of Members' Equity For the Year Ended December 31, 2012 I WIKT Partners Madison Sanders 1 Observer Newspaper, LLC Total 2 Balances, lanuary 1, 2012 Capital additions 14 3 Net income for the year 7 Member withdrawals # Balances, December 31, 2012 What are the advantages of an income shanng agreement for the members of the LLC Without an incomeshang agreement, each member ar knowledged in the income sharing fomuld be credited with an el proportion of the total caning, or on the each Sepwate contribution