. InstructionsExploit 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. Anyremaining 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 Amounts equal to the salary andinterest allowances were withdrawn by the members.Required:a. Determine the division of income among the three members.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 ofaccounts for the exact wording of the account titles. CNOW journals do not use lines for jourmal explanations. Every line on a jourmal page isused 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 boxdoes not require an entry, leave it blank.d. What are the advantages of an income-sharing agreement for the members of this LLC? InstructionsChart of AccountsSchedule of Division of IncomeJournalStatement of Members' EquityFinal QuestionJournalStatement of Members' Equityb.not use lines for journc. 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, LLCStatement of Members' EquityFor the Year Ended December 31, 20Y2EncounterWACS PartnersElyse O'ReillyTotalNewspaper, LLC2 Balances, January 1, 20Y2$200,000.00$37,400.00$163,500.00$400,900.003 Capital additions48,100.00+ Net income for the year5 Member withdrawals6 Balances, December 31, 20Y2| |" |* * * " °

Revenue $ 1,263,600 Expense $ (891,900) Net Income $ 371,700…

Answered: c. Prepare a statement of members…

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

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....

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