llc net income and statment of members equity
Ch 123 Exercises and Problems took Calculator Pretom LLC Net Income and Statement of Members' Equity Marvel Media, LLC, has three members: WUKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 2012, the three members had equity of $175,000, 545,000, and $105,000, respectively. WLKT Partners contributed an additional $40,000 to Marvel, Media, LLC, on June 1, 2012. Madison Sanders received an annual salary allowance of $101,500 during 2072. 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 Marvel Media, LLC, for 2012 were $736,049, 5436,049 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 Amounts equal to the salary and interest allowances were withdrawn by the members a. Determine the division of income among the three members.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 lowance Interest allowance Remaining Income (4:33) Net Income an amount box does not require an b. Prepare the journal entries to close the (1) net income and (2) withdrawals to the individual member equity accounts for a compound entry, entry leave it blank (1) Revenues Expenses WUKT Partners, Member Equity - 89 Calculator PILI 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. Prepare a 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, 2012 WLKT Partners Madison Sanders Observer Newspaper, LLC Total Balances, January 1, 2012 Capital additions Net income for the year Member withdrawals Balances, December 31, 20Y2 $ Check My Work 2 more Check My Work uses remaining. WLKT Partners, Drawing Madison Sanders, Drawing Observer Newspaper, LLC, Drawing c. Prepare a statement of members' equity for 2012. 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, 2012 WLKT Partners Madison Sanders Observer Newspaper, LLC Total Balances, January 1, 2012 Capital additions Net Income for the year WW) 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 each. Separate contributions be acknowledged in the income-sharing formula
