Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 2012, the three members had equity of $200,000, $37,400, and $163,500, respectively WLKT Partners contributed an additional $48,100 to Marvel Media, LLC, on June 1, 2012. Madison Sanders received an annual salary allowance of $59,700 during 2012. 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 4:3:3 among the three members, members. The revenues, expenses, and net income for Marvel Media, LLC, for 2012 were $1,263,600, 891,900 and $371,700 respectively. Amounts equal to the salary and interest allowances were withdrawn by the members. Required: A. Determine the division of income among the three members B. Prepare the journal entries to close the net income and withdrawals to the individual member equity accounts. Refer to the Chart of Accounts for exact wording of account titles. C. Prepare a statement of members' equity for 2012 D. What are the advantages of an income-sharing agreement for the members of this LLC? A. Determine the division of income among the three members. Question not attempted. 2 Salary allowance Interest allowance Remaining income (4:3:35) 5 Net income Schedule of Division of Income Score: 0/58 Observer WLKT Partners Madison Sanders Total Newspaper, LLC Question not attempted. 32 DATE DESCRIPTION Closing Entries JOURNAL Score: 0/135 POST REF DEBIT CREDIT PAGE 10 ACCOUNTING EQUATION ASSETS LIABILITIES EQUITY Question not attempted. 2 Balances, January 1, 2012 3 Capital additions 4 5 Net income for the year 6 7 Member withdrawals Balances, December 31, 2012 Marvel Media, LLC Statement of Members' Equity For the Year Ended December 31, 2012 Score: 0/106 WLKT Partners Madison Sanders Observer Newspaper, LLC Total