Interactive Media, LLC, has three members: VC Partners, Colin Campella, and Active Graphics, LLC. On January 1, 20Y2, the three members had equity of $180,000, $45,000, and $110,000, respectively. VC Partners contributed an additional $50,000 to Interactive Media, LLC, on June 1, 20Y2. Colin Campella received an annual salary allowance of $104,400 during 20Y2. The members equity accounts are also credited with 12% 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 Interactive Media, LLC, for 20Y2 were $962,121, $692,121 and $270,000, respectively. Amounts equal to the salary and interest allowances were withdrawn by the members.

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

Line Item Description	VC Partners	Colin Campella	Active Graphics, LLC	Total
Salary allowance	Salary allowance	$Salary allowance	Salary allowance	$Salary allowance
Interest allowance	$Interest allowance	Interest allowance	$Interest allowance	Interest allowance
Remaining income (4:3:3)	Remaining income (4:3:3)	Remaining income (4:3:3)	Remaining income (4:3:3)	Remaining income (4:3:3)
Net income	$Net income	$Net income	$Net income	$Net income

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a. Set up a column for each member and a total column. Allocate salary allowances, consider interest allowance, then distribute the remaining income based on the income sharing agreement.

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b. Journalize the entry to close the revenues and expenses to the member equity accounts. If an amount box does not require an entry, leave it blank.

Transaction	Account	Debit	Credit
(1)	Colin Campella, Member EquityActive Graphics, LLC, Member EquityRevenuesVC Partners, DrawingVC Partners, Member EquityRevenues
	CashColin Campella, DrawingExpensesRevenuesVC Partners, DrawingExpenses
	Colin Campella, DrawingActive Graphics, LLC, DrawingRevenuesVC Partners, DrawingVC Partners, Member EquityVC Partners, Member Equity
	CashColin Campella, Member EquityActive Graphics, LLC, DrawingRevenuesVC Partners, DrawingColin Campella, Member Equity
	CashColin Campella, DrawingActive Graphics, LLC, Member EquityRevenuesVC Partners, DrawingActive Graphics, LLC, Member Equity

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b. Close revenues and expenses to the member equity accounts.

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c. Journalize the closing journal entry for the member withdrawals of salary and interest. If an amount box does not require an entry, leave it blank.

Transaction	Account	Debit	Credit
(2)	Colin Campella, DrawingActive Graphics, LLC, DrawingRevenuesVC Partners, DrawingVC Partners, Member EquityVC Partners, Member Equity
	CashColin Campella, Member EquityActive Graphics, LLC, DrawingRevenuesVC Partners, DrawingColin Campella, Member Equity
	Active Graphics, LLC, DrawingActive Graphics, LLC, Member EquityInterest ExpenseRevenuesVC Partners, DrawingActive Graphics, LLC, Member Equity
	CashColin Campella, Member EquitySalary ExpenseVC Partners, DrawingVC Partners, Member EquityVC Partners, Drawing
	CashColin Campella, DrawingColin Campella, Member EquityActive Graphics, LLC, Member EquityVC Partners, Member EquityColin Campella, Drawing
	CashColin Campella, Member EquityActive Graphics, LLC, DrawingRevenuesVC Partners, Member EquityActive Graphics, LLC, Drawing

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c. Close the drawing accounts to the respective equity accounts.

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d. Prepare a statement of members equity for 20Y2. If an amount box does not require an entry, leave it blank. For amounts that should be subtracted, enter the amount with a minus sign.

Line Item Description	VC Partners	Colin Campella	Active Graphics, LLC	Total
Balances, January 1, 20Y2	$Balances, January 1, 20Y2	$Balances, January 1, 20Y2	$Balances, January 1, 20Y2	$Balances, January 1, 20Y2
Investment by member	Investment by member	Investment by member	Investment by member	Investment by member
Net income for the year	Net income for the year	Net income for the year	Net income for the year	Net income for the year
Member withdrawals	Member withdrawals	Member withdrawals	Member withdrawals	Member withdrawals
Balances, December 31, 20Y2	$Balances, December 31, 20Y2	$Balances, December 31, 20Y2	$Balances, December 31, 20Y2	$Balances, December 31, 20Y2