. 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 $163,500, respectively. WACS Partnerscontributed 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 eachmember'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 $1,263,600, 891,900 and$371,700 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 Amounts equal to the salary and interest allowances were withdrawn by the members.Required:a. Determine the division of income among the three members.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 ofaccounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal 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? JournalShaded cells have feedback. XAll transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.PAGE 10JOURNALScore: 53/135ACCOUNTING EQUATIONDATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1Closing Entries2Dec. 31Cash690,000.00WACS Partners, Member Equity209,400.003↑Elyse O'Reilly, Member Equity333,450.004Encounter Newspaper, LLC, Member Equity147,150.0056Dec. 31WACS Partners, Drawing64,800.00Elyse O'Reilly, Drawing225,000.008Encounter Newspaper, LLC, Drawing38,700.00910Cash328,500.001112

Workings for Schedule of Division of Income : Particulars WACS Partners Elyse O really Encounter…

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 $163,500, 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 $1,263,600, 891,900 and $371,700 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 tities. CNOW jourmals do not use lines for journal explanations. Every line on a journal 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?

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 3DQ