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LLC net income and statement of members' equity Interactive Media, LLC , has three members: VC Partners, Colin Campella, and Active Graphics, LLC . On

LLC net income and statement of members' equity
Interactive Media, LLC, has three members: VC Partners, Colin Campella, and Active Graphics, LLC. On January 1,20Y2, the three members had equity of $400,000, $125,000, and $175,000, respectively. VC Partners contributed an additional $75,000 to Interactive Media, LLC, on June 1,20Y2. Colin Campella received an annual salary allowance of $90,000 during 20Y2. The members equity accounts are also credited with 10% 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 $2,340,000, $1,820,000, and $520,000, respectively. Amounts equal to the salary and interest allowances were withdrawn by the members.
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.
(1)
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.
(2)
Interactive Media, LLC
Statement of Members' Equity
For the Year Ended December 31,20Y2
d What are the advantages of an income-sharing agreement for the members of this LLC?
Without an income-sharing agreement, each member
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