Question

LLC Net Income and Statement of Members' Equity Marvel Media, LLC has three members: WET Partners, Madison Sanders, and Ouerver Newspaper, LLC, On January 1, 2012, the three members had uity of $210,000, $55,000, and $125,000, respectively, WLKT Partners Contributed an additional $50,000 to Marvel Media, LLC, on June 2012 Madison Sanders received an annual salary slowance of $121,800 during 2012. The members' equity accounts we also credited with 15 interest on each member's January 1 capital balance. Any remaining income is to be shared in the ratio of 4:33 among the three members. The revenues, expenses, and reincome for Marvel Media LLC, for 2012 were $716,430, 356,430 and $360,000 respectively. Amounts to the salary and interest allowances were withdrawn by the members a. Determine the division of income among the three members.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 rere an entry leave it . Schedule of Division of Income WLKT Partners Madison Sanders Observer Newspaper, LLC Total Salary alone Interest alowance Remaining me (433) is to the individual member equity arounts for a compound entry, as amount b. Prepare the journal entre to close the (1) net income and (2) wich box does not require an entry leave it blank Previous Next > ning Chuck My Work? more Check My Work uses Emal structor Save and Ext Sumitigment for Grading

Answer 1

Solution a:

Schedule of Divison of income
Particulars	WLKT Partners	Madison Senders	Observer Newspaper LLC	Total
Salary Allowance		$121,800.00		$121,800.00
Interest Allowance WLKT - ($210,000*15%) Madison - ($55,000*15%) Observer - ($125,000*15%)	$31,500.00	$8,250.00	$18,750.00	$58,500.00
Remaining Income (360,000 - $121,800 - $58,500 = $179,700) WLKT ($179,700*4/10) Madison ($179,700*3/10) Observer ($179,700*3/10)	$71,880.00	$53,910.00	$53,910.00	$179,700.00
Net Income	$103,380.00	$183,960.00	$72,660.00	$360,000.00

Solution b:

Journal Entries - Marvel Media LLC
Particulars	Debit	Credit
Divison of net income:
Income Summary Dr	$360,000.00
To WLKT Partners, Members equity		$103,380.00
To Madison Senders Members equity		$183,960.00
To Observer Newspaper Members equity		$72,660.00
(Being Net income distributed among partners)
Withdrawl of Individual Member 's Equity:
WLKT Partners Member's Equity Dr	$31,500.00
Madison Senders Member's Equity Dr	$130,050.00
Observer Newspaper LLC Member's Equity Dr	$18,750.00
To Cash A/c		$180,300.00
(Being salary and interest withdrawn by partners)