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…
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
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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
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Rios Co. is a regional insurance company that began operations on January 1, 2012. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on December 31: Record these transactions on page 10: 20Y2 Feb. May July 1 Purchased 7,400 shares of Caldwell Inc. common stock at $38 per share plus a brokerage commission of $740. Caldwell has 100,000 shares of common stock outstanding. 1 Purchased securities of Holland Inc. as a trading investment for $93,687. 1 Sold 3,850 shares of Caldwell Inc. for $36 per share less a $105 brokerage commission. 31 Received an annual dividend of $0.25 per share on 3,550 shares of Caldwell Inc. stock. Nov. 15 Sold the remaining shares of Caldwell Inc. for $39 per share less a $85 brokerage commission. Dec. 31 The trading securities of Holland Inc. have a fair value on December 31 of $84,345. Record these transactions on page 11: 20Y3 Apr. 1 Purchased securities of Fuller Inc. as a trading investment for…

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