Intermedia, LLC, has three members: WYXT Partners, Lindsey Wilson, and Daily Sun Newspaper, LLC. On January 1, 2014, the three members had equity of $335,000, $85,000, and $200,000, respectively. WYXT Partners contributed an additional $80,000 to Intermedia, LLC, on June 1, 2014. Lindsey Wilson received an annual salary allowance of $194,300 during 2014. The members' equity accounts are also credited with 18% 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 net income for Intermedia, LLC, for 2014 was $650,000. Amounts equal to the salary and interest allowances were withdrawn by the members.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.

Schedule of Division of Income
WYXT Partners	Lindsey Wilson	Daily Sun Newspaper, LLC	Total
Salary allowance	Correct 9 of Item 1	$ Correct 10 of Item 1	Correct 11 of Item 1	$ Correct 12 of Item 1
Interest allowance	$ Correct 14 of Item 1	Correct 15 of Item 1	$ Correct 16 of Item 1	Correct 17 of Item 1
Remaining income (4:3:3)	Correct 19 of Item 1	Correct 20 of Item 1	Correct 21 of Item 1	Correct 22 of Item 1
Net income	$ Correct 24 of Item 1	$ Correct 25 of Item 1	$ Correct 26 of Item 1	$ Correct 27 of Item 1

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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 box does not require an entry, leave it blank.

(1)	Daily Sun Newspaper, LLC, Member Income Summary Lindsey Wilson, Member Equity WYXT Partners, Drawing WYXT Partners, Member Equity Correct 2 of Item 2	Correct 3 of Item 2	Correct 4 of Item 2
	Daily Sun Newspaper, LLC, Drawing Income Summary Lindsey Wilson, Drawing WYXT Partners, Drawing WYXT Partners, Member Equity Correct 5 of Item 2	Correct 6 of Item 2	Correct 7 of Item 2
	Cash Daily Sun Newspaper, LLC, Drawing Income Summary Lindsey Wilson, Member Equity WYXT Partners, Drawing Correct 8 of Item 2	Correct 9 of Item 2	Correct 10 of Item 2
	Cash Daily Sun Newspaper, LLC, Member Equity Income Summary Lindsey Wilson, Drawing WYXT Partners, Drawing Correct 11 of Item 2	Correct 12 of Item 2	Correct 13 of Item 2
(2)	Daily Sun Newspaper, LLC, Drawing Income Summary Lindsey Wilson, Drawing WYXT Partners, Drawing WYXT Partners, Member Equity Correct 15 of Item 2	Correct 16 of Item 2	Correct 17 of Item 2
	Cash Daily Sun Newspaper, LLC, Drawing Income Summary Lindsey Wilson, Member Equity WYXT Partners, Drawing Correct 18 of Item 2	Correct 19 of Item 2	Correct 20 of Item 2
	Daily Sun Newspaper, LLC, Drawing Daily Sun Newspaper, LLC, Member Equity Income Summary Interest Expense WYXT Partners, Drawing Correct 21 of Item 2	Correct 22 of Item 2	Correct 23 of Item 2
	Daily Sun Newspaper, LLC, Member Equity Lindsey Wilson, Member Equity Salary Expense WYXT Partners, Drawing WYXT Partners, Member Equity Correct 24 of Item 2	Correct 25 of Item 2	Correct 26 of Item 2
	Cash Daily Sun Newspaper, LLC, Member Equity Lindsey Wilson, Drawing Lindsey Wilson, Member Equity WYXT Partners, Member Equity Correct 27 of Item 2	Correct 28 of Item 2	Correct 29 of Item 2
	Cash Daily Sun Newspaper, LLC, Drawing Income Summary Lindsey Wilson, Member Equity WYXT Partners, Member Equity Correct 30 of Item 2	Correct 31 of Item 2	Correct 32 of Item 2

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c. Prepare a statement of members' equity for 2014.

Intermedia, LLC
Statement of Members' Equity
For the Year Ended December 31, 2014
WYXT Partners	Lindsey Wilson	Daily Sun Newspaper, LLC	Total
Members' equity, January 1, 2014	$ Correct 9 of Item 3	$ Correct 10 of Item 3	$ Correct 11 of Item 3	$ Correct 12 of Item 3
Additional investment during the year	Correct 14 of Item 3	Correct 15 of Item 3
$ Correct 16 of Item 3	$ Correct 17 of Item 3	$ Correct 18 of Item 3	$ Correct 19 of Item 3
Net income for the year	Correct 21 of Item 3	Correct 22 of Item 3	Correct 23 of Item 3	Correct 24 of Item 3
$ Correct 25 of Item 3	$ Correct 26 of Item 3	$ Correct 27 of Item 3	$ Correct 28 of Item 3
Withdrawals during the year	Correct 30 of Item 3	Correct 31 of Item 3	Correct 32 of Item 3	Correct 33 of Item 3
Members' equity, December 31, 2014	$ Correct 35 of Item 3	$ Correct 36 of Item 3	$ Correct 37 of Item 3	$ Correct 38 of Item 3