Instructions

Marvel Media, LLC$,$ has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC$.$ On January $1,20$Y$2,$ the three members had equity of $$196,600,$ $$39,100,$ and $$166,000,$ respectively. WLKT Partners contributed an additional $$53,300$ to Marvel Media, LLC$,$ on June $1,20$Y$2.$ Madison Sanders received an annual salary allowance of $$56,100$ during $20Y2.$ The members' equity accounts are also credited with $20\%$ interest on each member's January $1$ capital balance. Any remaining income is to be shared in the ratio of $4$:$3$:$3$ among the three members. members. The revenues, expenses, and net income for Marvel Media, LLC$,$ for $20$ Y $2$ were $$1,243,100,854,900$ and $$388,200$ 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 Amounts equal to the salary and interest allowances were withdrawn by the members.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.

B$.$ Prepare the journal entries to close the net income and withdrawals to the individual member equity accounts. Refer to the Chart of Accounts for exact wording of account titles.

C$.$ Prepare a statement of members' equity for $20Y2.$

D$.$ What are the advantages of an income$-$sharing agreement for the members of this LLC$?$

Journal

B$.$ Prepare the journal entries to close the net income and withdrawals to the individual member equity accounts. Refer to the Chart of Accounts for exact wording of account titles.

Question not attempted.

PAGE $10$

Points:

$\frac{0}{24}$