Reference no: EM132473424

LLC Net Income and Statement of Members' Equity

Marvel Media, LLC, has three members:

1. WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 20Y2, the three members had equity of $135,000, $35,000, and $80,000, respectively. WLKT Partners contributed an additional $30,000 to Marvel, Media, LLC, on June 1, 20Y2. Madison Sanders received an annual salary allowance of $78,300 during 20Y2. The members' equity accounts are also credited with 15% interest on each member's January 1 capital balance. Any remaining incom
2. e 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 20Y2 were $323,928, $93,928 and $230,000 respectively. Amounts equal to the salary and interest allowances were withdrawn by the members.

Question a. Determine the division of income among the three members. If an amount box does not require an entry, leave it blank.

Question b. Prepare the journal entries to close the (1) net income and (2) withdrawals to the individual member equity accounts. For a compound entry, if an amount box does not require an entry, leave it blank.

Question c. Prepare a/an statement of members' equity for 20Y2.