LLC net income and statement of members' equity

Interactive Media, LLC$,$ has three members: VC Partners, Colin Campella, and Active Graphics, LLC$.$ On January $1,20$Y$2,$ the three members had equity of $$235,000,$ $$60,000,$ and $$140,000,$ respectively. VC Partners contributed an additional $$60,000$ to Interactive Media, LLC$,$ on June $1,20$Y$2.$ Colin Campella received an annual salary allowance of $$136,300$ during $20$Y$2.$ The members$$ equity accounts are also credited with $15\%$ interest on each member$$s January $1$ capital balance. Any remaining income is to be shared in the ratio of $4$:$3$:$3$ among the three members. The revenues, expenses, and net income for Interactive Media, LLC$,$ for $20$Y$2$ were $$481,667,$ $$81,667$ and $$400,000,$ respectively. Amounts equal to the salary and interest allowances were withdrawn by the members.

Question Content Area

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

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

$(1)$

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

Interactive Media, LLC

Statement of Members' Equity

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

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Dividing partnership income

Dahl and Westhoff have decided to form a partnership. They have agreed that Dahl is to invest $$261,000$ and that Westhoff is to invest $$87,000.$ Dahl is to devote one$-$half time to the business, and Westhoff is to devote full time. The following plans for the division of income are being considered:

Equal division.

In the ratio of original investments.

In the ratio of time devoted to the business.

Interest of $6\%$ on original investments and the remainder equally.

Interest of $6\%$ on original investments, salary allowances of $$40,000$ to Dahl and $$90,000$ to Westhoff, and the remainder equally.

Plan $($e$),$ except that Westhoff is also to be allowed a bonus of $$27,000$ if net income exceeds $$100,000.$

Required:

For each plan, determine the division of the net income under each of the following assumptions: $(1)$ net income of $$142,000$ and $(2)$ net income of $$250,000.$ Round answers to the nearest whole dollar.