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c. Prepare a statement of members equity for 20Y2 A decrease to members' equity should be entered as a negative amount. if an amount box anter Jenunt bisek

c. Prepare a statement of members equity for 20Y2 A decrease to members' equity should be entered as a negative amount. if an amount box anter Jenunt bisek

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Instructions Exploit Media, LLC, has three members: WACS Partners, Elyse O'Reilly, and Encounter Newspaper, LLC. On January 1, 20Y2, the three members had equity of $200,000, $37,400, and S163,500, respectively. WACS Partners contributed an additional $48,100 to Exploit Media, LLC, on June 1, 20Y2. Elyse O'Reilly received an annual salary allowance of $59,700 during 20Y2. 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. The revenues, expenses, and net income for Exploit Media, LLC, for 20Y2 were $1,263,800, 891,900 and 5371,700 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 Amounts equal to the salary and interest allowances were withdrawn by the members.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. If an amount box does not require an entry, leave it blank. b. Prepare the journal entry to close the revenues, expenses, and withdrawals to the individual member equity accounts. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for jourmal explanations. Every line on a jourmal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. c. Prepare a statement of members' equity for 20Y2. A decrease to members' equity should be entered as a negative amount. If an amount box does not require an entry, leave it blank. d. What are the advantages of an income-sharing agreement for the members of this LLC?
Transcribed Image Text:Instructions Exploit Media, LLC, has three members: WACS Partners, Elyse O'Reilly, and Encounter Newspaper, LLC. On January 1, 20Y2, the three members had equity of $200,000, $37,400, and S163,500, respectively. WACS Partners contributed an additional $48,100 to Exploit Media, LLC, on June 1, 20Y2. Elyse O'Reilly received an annual salary allowance of $59,700 during 20Y2. 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. The revenues, expenses, and net income for Exploit Media, LLC, for 20Y2 were $1,263,800, 891,900 and 5371,700 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. If an amount box does not require an entry, leave it blank. b. Prepare the journal entry to close the revenues, expenses, and withdrawals to the individual member equity accounts. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for jourmal explanations. Every line on a jourmal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. c. Prepare a statement of members' equity for 20Y2. A decrease to members' equity should be entered as a negative amount. If an amount box does not require an entry, leave it blank. d. What are the advantages of an income-sharing agreement for the members of this LLC?
Instructions Chart of Accounts Schedule of Division of Income Journal Statement of Members' Equity Final Question Journal Statement of Members' Equity b. not use lines for journ c. Prepare a statement of members' equity for 20Y2. A decrease to members' equity should be entered as a negative amount. If an amount box does not require an entry, leave it blank. Exploit Media, LLC Statement of Members' Equity For the Year Ended December 31, 20Y2 Encounter WACS Partners Elyse O'Reilly Total Newspaper, LLC 2 Balances, January 1, 20Y2 $200,000.00 $37,400.00 $163,500.00 $400,900.00 3 Capital additions 48,100.00 + Net income for the year 5 Member withdrawals 6 Balances, December 31, 20Y2 | |" |* * * " °
Transcribed Image Text:Instructions Chart of Accounts Schedule of Division of Income Journal Statement of Members' Equity Final Question Journal Statement of Members' Equity b. not use lines for journ c. Prepare a statement of members' equity for 20Y2. A decrease to members' equity should be entered as a negative amount. If an amount box does not require an entry, leave it blank. Exploit Media, LLC Statement of Members' Equity For the Year Ended December 31, 20Y2 Encounter WACS Partners Elyse O'Reilly Total Newspaper, LLC 2 Balances, January 1, 20Y2 $200,000.00 $37,400.00 $163,500.00 $400,900.00 3 Capital additions 48,100.00 + Net income for the year 5 Member withdrawals 6 Balances, December 31, 20Y2 | |" |* * * " °
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