LLCNet Income andStatement of Members' Equity 13-3.4

Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 20Y2, the three members had equity of $155,000, $40,000, and $95,000, respectively. WLKT Partners contributed an additional $40,000 to Marvel, Media, LLC, on June 1, 20Y2. Madison Sanders received an annual salary allowance of $89,900 during 20Y2. 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 revenues, expenses, and net income for Marvel Media, LLC, for 20Y2 were $837,125, $537,125 and $300,000 respectively. Amounts equal to the salary and interest allowances were withdrawn by the members.

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

WLKT Partners

Madison Sanders

Observer Newspaper, LLC

Total

Salary allowance

$

$

Interest allowance

$

$

Remaining income (4:3:3)

Net income

$

$

$

$

b. 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)

Revenues

Expenses

WLKT Partners, Member Equity

Madison Sanders, Member Equity

Observer Newspaper, LLC, Member Equity

(2)

WLKT Partners, Member Equity

Madison Sanders, Member Equity

Observer Newspaper, LLC, Member Equity

WLKT Partners, Drawing

Madison Sanders, Drawing

Observer Newspaper, LLC, Drawing

c. statement of members' equity for 20Y2. If an amount box does not require an entry, leave it blank.

Marvel Media, LLC

Statement of Members' Equity

For the Year Ended December 31, 20Y2

WLKT Partners

Madison Sanders

Observer Newspaper, LLC

Total

Balances, January 1, 20Y2

$

$

$

$

Capital additions

$

$

$

$

Net income for the year

$

$

$

$

Member withdrawals

Balances, December 31, 20Y2

$

$

$

$