Question

Chapter 12 eBook Calculator LLC Net Income and statement of Members' Equity 1. EX 12.03. EXCEL ALGO Joumal Instructions Chart of Accounts Schedule of Division of income 2. EX12.18. EXCEL ALGO 3. EX 12.08 BLANKSHEETAL Instruction 4. PE 12.03A BLANKSHEET 5. EX 1201 BLANKSHEETAL Exploit Media, LLC, has the members. WACS Partners, Elyse O'Reilly and Encounter Newspaper, LLC on January 1, 2012, ne tree members had equity of $205400,531,700, and $175.500 espectively WACS Partners contributed an additional 547400 to Exploit Media, LLC, on June 1, 2012. Elyse Rey received an annual salary allowance of 554 500 during 2012. The members equity accounts are also created with 20% interest on each members January 1 capital balance. Any remaining income is to be shared in the ratio of 433 among the three members. The revenues expenses, and net income for Exploit Media, LLC, for 2012 were 51730.000 201 200 and $23.600 respectively Amounts equal to the salary and interest allowances were withdrawn by the members 6. PE 12 01A BLANKSHEET 7. PE 12.04 8. PE 12048 Required a Determine the son of income among the three members an amount box does not require any lave blank Prepare the male ose the revenues expenses and was the member oily accounts. Refer to the chant of accounts for the wing the accounts. Now you do noruses formal explanations Ewery ine on a manages used for debitor credit CNOW uma caindent acreditentry when a credit amounted Preparate for 2012 Aromers'equy hunt an amount box 9. EX 12 10 BLANKSHELTAL 10. PR 1203 BLAKSHEETA.

Answer 1

Solution a:
Schedule of Divison of income
Particulars	WACS Partners	Elyse O really	Encounter Newspaper LLC	Total
Salary Allowance		$54,500.00		$54,500.00
Interest Allowance WACS - ($205,400*20%) Elyse - ($37,700*20%) Encounter - ($175,900*20%)	$41,080.00	$7,540.00	$35,180.00	$83,800.00
Remaining Income (338,600 - 54,500 - $83,800 = $200,300) WACS ($200,300*4/10) Elyse ($200,300*3/10) Encounter ($200,300*3/10)	$80,120.00	$60,090.00	$60,090.00	$200,300.00
Net Income	$121,200.00	$122,130.00	$95,270.00	$338,600.00

Solution b:
Journal Entries - Exploit Media LLC
Particulars	Debit	Credit
Divison of net income:
Revenue Dr	$1,230,000.00
To Expenses		$891,400.00
To WACS Partners, Members equity		$121,200.00
To Elyse O'Really Members equity		$122,130.00
To Encounter Newspaper Members equity		$95,270.00
(Being Net income distributed among partners)
Withdrawl of Individual Member 's Equity:
WACS Partners Member's Equity Dr	$41,080.00
Elyse O' Really Member's Equity Dr	$62,040.00
Encounter Newspaper LLC Member's Equity Dr	$35,180.00
To WACS Partners, Drawing		$41,080.00
To Elyse O' Really Drawing		$62,040.00
To Encounter Newspaper Drawing		$35,180.00
(Being drawing account closed)

Solution c:
Exploit Medial LLC
Statement of Member's Equity
For year ended December 31' 20Y2
Particulars	WACS Partners	Elyse O' Really	Encounter Newspaper LLC	Total
Balances, Janauar 1, 20Y2	$205,400.00	$37,700.00	$175,900.00	$419,000.00
Add: Capital Additions	$47,400.00			$47,400.00
	$252,800.00	$37,700.00	$175,900.00	$466,400.00
Add: Net Income for the year	$121,200.00	$122,130.00	$95,270.00	$338,600.00
	$374,000.00	$159,830.00	$271,170.00	$805,000.00
Less: Member's Withdrawl	$41,080.00	$62,040.00	$35,180.00	$138,300.00
Balances, December'31 20Y2	$332,920.00	$97,790.00	$235,990.00	$666,700.00

Solution d:

Without an income sharing agreement, each member capital will be credited with an equal proportion of the total earnings or one third each. Separate contribution should be acknowledged in the income sharing formula.