Marvel Media, LLC, has three members: WLKT Partners,Madison Sanders, and Observer Newspaper, LLC. OnJanuary 1, 20Y2, the three members had equity of $200,000, $37,400, and $163, 500, respectively. WLKTPartners contributed an additional $48, 100 to MarvelMedia, LLC, on June 1, 20 Y2. Madison Sandersreceived an annual salary allowance of $59,700 during20Y. The members' equity accounts are also creditedwith 10% interest on each member's January 1 capitalbalance. Any remaining income is to be shared in theratio of 4:3:3 among the three members. members. Therevenues, expenses, and net income for Marvel Media,LLC, for 2012 were $1,263,600, 891,900 and $371,700respectively. Amounts equal to the salary and interestallowances were withdrahn by the members.Required:A. Determine the division of income among the threemembers.B. Prepare the journal entries to close the net incomeand withdrawals to the individual member equityaccounts. Refer to the Chart of Accounts for exactwording of account titles.C. Prepare a statement of members' equity for 2012.D. What are the advantages of an income - sharingagreement for the members of this LLC?

Step 1: A. Determine the division of income among the three members:Calculate interest on January 1…

Answered: Marvel Media, LLC, has three members:…

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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NSYNC Realty, Incorporated, has been operating for three years and is owned by three investors. JC Chasez owns 60 percent of the total outstanding stock of 9,090 shares and is the managing executive in charge. On December 31, current year, the following financial items for the entire year were determined: commissions earned and collected in cash, $152,900, plus $17,600 uncollected; rental service fees earned and collected, $21,900; salaries expense paid, $62,660; commissions expense paid, $35,130; payroll taxes paid, $2,400; rent paid for January through November, $2,530 (not including December rent yet to be paid); utilities expense paid, $2,000; promotion and advertising paid, $7,550; income taxes paid, $23,300; and miscellaneous expenses paid, $450. There were no other unpaid expenses at December 31. Also during the year, the company paid the owners “out-of-profit” cash dividends amounting to $11,900. Complete the following income statement: Revenues: Commissions earned Rental…
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12. ABC was formed by an investor who exchanged 2,000,000 for 100,000 shares of stock on August 1. ABC prepaid 12 months of rent by paying $96,000. ABC hired 3 employees and agreed to pay each $100,000/year. ABC agreed to pay on the first of each month after the services are performed. ABC withholds 20% for federal tax; 5% for state tax; and 7.65% for FICA. ABC sold services over the year for $1,200,000 on account. They warranty their work for 1 year. ABC estimated 1% for bad debts using the percent of sales method. ABC estimated $100,000 in warranty work, but only paid out $20,000 (as cash back) in warranties through the end of the year. ABC received $400,000 in cash against the receivable by year-end. On 8/15 ABC purchased equipment signing a note for $300,000. ABC depreciated the equipment by $30,000 for book purposes and $50,000 for tax purposes. ABC accrued $5,000 in interest expense. On 8/1 ABC invested $100,000 into muni-bonds. The bonds were valued at 102,000 by year-end and…
EEE has been very successful in operating his business for the last five years. His financial statements showed total assets of P380,000 and liabilities of P50,000. He invited FFF to join him by investing an amount enough to give him a 30% interest in the firm. Profit and loss agreement provides 80:20 to EEE and FFF, respectively. Before the formation, the parties agreed to make the following adjustments in the books of EEE:· Allowance for doubtful accounts amounting to P10,000 be established.· The merchandise should be adjusted to include goods out on consignment amounting to P25,000.· Accrued utilities of P2,500 be recognized.How much is the amount to be invested by FFF?
Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 20Y2, the three members had equity of $200,000, $40,000,and $160,000, respectively. WLKT Partners contributed an additional $50,000 to Marvel Media, LLC, on June 1, 20Y2. Madison Sanders received an annual salary allowance of $55,000 during 20Y2. The members’ equity accounts are also credited with 10% intereston 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 Marvel Media, LLC, for 20Y2 were $1,260,000, $900,000, and $360,000, respectively. Amounts equal to the salary and interest allowances were withdrawn by the members.a. Determine the division of income among the three members.b. Prepare the journal entry to close the revenues, expenses, and withdrawals to the individual member equity accounts.c. Prepare a statement of members’ equity for 20Y2.d. What…
subject:accounting
Home Realty, Incorporated, has been operating for three years and is owned by three Investors. J. Doe owns 60 percent of the 9,000 total outstanding shares and is the managing executive in charge. On December 31, 2020, the following financial Items for the entire year were determined: sales revenue, $166,000; selling expenses, $97,000; Interest expense, $6,300; promotion and advertising expenses. $9,025; and Income tax expense, $18,500. Also during the year, the company declared and paid the owners dividends amounting to $12.000. Required: Prepare the company's Income statement. Revenue: Expenses: HOME REALTY, INCORPORATED Income Statement For the Year Ended December 31, 2020 Total expenses
Robert has recently decided to open his new business of retail of products for petcare in a store located in the center of Barcelona. During the month of May 2021, Robert’s new company 4PETS, Ltd. realized the following transaction: 3 of May: 4PETS, Ltd. issued to Robert 200,000 shares in exchange of $200,000 of share capital 3th of May: 4PETS, Ltd purchased a shop next to the cathedral for $300,000. The price of the land is $150,000. Robert paid $80,000 in cash and issued a note payable for the remaining part. 4th of May: 4PETS, Ltd purchased furniture to FURNITURES4ALL, Inc. for $35,000. 4PETS, Ltd paid $20,000 in cash, the remaining $15,000 will have to be paid the 29th of May. 5th of May: 4PETS, Ltd purchased merchandises on account to ALLANIMALS, Inc for $53,000 6th of May: 4PETS, Ltd makes some installations in the shop for $8,500 paid in cash 7th of May: 4PETS, Ltd hires one employee with a salary $1,500/ month. Salaries are paid on the following day 2 of each month. 16 of…
Subject : Accounting
Yola Corporation is required to include 15 items in their 10-K for the year ending 9/30/21. In which required item from the 10-K would this content be located? Emily Smith, Chief Product Officer Total non Equity Compensation $1,250,000 Question 28 options: a) Certain Relationships and Related Transactions b) Executive Compensation c) Business d) Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
ABC was formed by an investor who exchanged 1,000,000 for 100,000 shares of stock on August 1. ABC prepaid 18 months of rent by paying $96,000. ABC hired 3 employees and agreed to pay each $100,000/year. ABC agreed to pay at the end of each month; after the services are performed. ABC withholds 20% for federal tax; 5% for state tax; and 7.65% for FICA. ABC sold services over the year for $1,200,000 on account. They warranty their work for 1 year. ABC estimated 1% for bad debts using the percent of sales method. ABC estimated $100,000 in warranty work, but only paid out $20,000 (as cash back) in warranties through the end of the year. ABC received $400,000 in cash against the receivable by year-end. On 8/15 ABC purchased equipment signing a note for $400,000. ABC depreciated the equipment by $60,000 for book purposes and $50,000 for tax purposes. ABC accrued $6,000 in interest expense. On 8/1 ABC invested $200,000 into muni-bonds. The bonds paid $9,000 in interest. ABC driver got a…
The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information . Issued 40% of authorized shares of class A common stock. Stock has par value of $45 per share and was issued at $62 per share. Issued at $60, 40% of authorized shares of no-par class B stock. Issued 30% of authorized shares of preferred stock at par value $125. Exchanged 40% of authorized shares of class A common stock for Office…

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