LLC Net Income and Statement of Members' Equity Exploit Media, LLC, has three members: WACS Partners, Elyse only, and Encounter Newspaper, LLC. On January 1, 2012, the three members had equity of $275,000, $55,000, and $220,000, respectively. WACS Partners contributed additional $69,000 to Exploit Media, LLC, on June 1, 2012. Elyse O'Reilly received an annual salary allowance of $76,000 during 2042. The members' equity accounts are also credited with 10% interest on each member's January 1 capital balance. Any remaining income is to be shared in the ratio of 4:33 among the three members. The revenues, expenses, and net income for Exploit Media, LLC, for 2012 were $1,730,000, $1,236,000, and $494,000, respectively. Amounts equal to the story and interest allowances were withdrawn by the members. a. Determine the division of income among the three member if an amount box does not require an entry, leave it blank. Schedule of Division of income WACS Partners Elyse O'Reilly Encounter Newspaper, LLC 17.00 5,500 27,000 Total 55.000 Salary allowance 76.000 76,000 Interest allowance Remaining Income (4:33) 145.200 105.900 106.900 172,700 130.000 Net Income 190,400 494,000 b. Prepare the journal entries to close the (1) revenues, expenses, and (2) withdrawals to the individual member equity accounts. If an amount box does not require an entry, leave it blank (1) m MI I In ull (2) c. Prepare a statement of members' equity for 2012. ir an amount box does not require an entry, leave it blank. Exploit Media, LLC Statement of Members' Equity For the Year Ended December 31, 20Y2 WACS Partners Madison Nelson Encounter Newspaper, LLC Total Balances, January 1, 20Y2 Capital additions Net income for the year Member withdrawals Balances, December 31, 2012 d What are the advantages of an income-sharing agreement for the members of this LLC? Without an income-sharing agreement, each member be credited with an equal proportion of the total earnings, or one-third cach. Separate contributions be acknowledged in the income-sharing formula