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 Amounts equal to the salary and interest allowances were withdrawn by the members.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$?$

Marvel Media, LLC

Score: $0/106$

Statement of Members' Equity

For the Year Ended December $31,20$ Y$2$

$\backslash$table$[[1,$WLKT Partners Madison Sanders

$\backslash$table$[[$Observer$],[$Newspaper$,$ LLC$]],],[2$ Balances, January $1,20$Y$2,,],[3$ Capital additions,,$],[4,,],[5,$Net income for the year,$],[6,,],[7,$Member withdrawals,$],[8,$Balances, December $31,20Y2,]]$