Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 20Y2, the three members had equity of $285,000, $70,000, and $170,000, respectively. WLKT Partners contributed an additional $70,000 to Marvel, Media, LLC, on June 1, 20Y2. Madison Sanders received an annual salary allowance of $165,300 during 20Y2. The members’ equity accounts are also credited with 12% 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 Marvel Media, LLC, for 20Y2 were $1,253,532, $833,532 and $420,000 respectively. Amounts equal to the salary and interest allowances were withdrawn by the members. a. Determine the division of income among the three members. If an amount box does not require an entry, leave it blank. Schedule of Division of Income WLKT Partners Madison Sanders Observer Newspaper, LLC Total Salary allowance fill in the blank ab13ed084fdffd4_1 $fill in the blank ab13ed084fdffd4_2 fill in the blank ab13ed084fdffd4_3 $fill in the blank ab13ed084fdffd4_4 Interest allowance $fill in the blank ab13ed084fdffd4_5 fill in the blank ab13ed084fdffd4_6 $fill in the blank ab13ed084fdffd4_7 fill in the blank ab13ed084fdffd4_8 Remaining income (4:3:3) fill in the blank ab13ed084fdffd4_9 fill in the blank ab13ed084fdffd4_10 fill in the blank ab13ed084fdffd4_11 fill in the blank ab13ed084fdffd4_12 Net income $fill in the blank ab13ed084fdffd4_13 $fill in the blank ab13ed084fdffd4_14 $fill in the blank ab13ed084fdffd4_15 $fill in the blank ab13ed084fdffd4_16 Feedback a. Set up a column for each member and a total column. Allocate salary allowances, then distribute the remaining income based on the income sharing agreement. b. Prepare the journal entries to close the (1) net income and (2) withdrawals to the individual member equity accounts. For a compound entry, if an amount box does not require an entry, leave it blank. (1) Revenues fill in the blank 6ccb0bf5d07a01f_2 fill in the blank 6ccb0bf5d07a01f_3 Expenses fill in the blank 6ccb0bf5d07a01f_5 fill in the blank 6ccb0bf5d07a01f_6 WLKT Partners, Member Equity fill in the blank 6ccb0bf5d07a01f_8 fill in the blank 6ccb0bf5d07a01f_9 Madison Sanders, Member Equity fill in the blank 6ccb0bf5d07a01f_11 fill in the blank 6ccb0bf5d07a01f_12 Observer Newspaper, LLC, Member Equity fill in the blank 6ccb0bf5d07a01f_14 fill in the blank 6ccb0bf5d07a01f_15 (2) WLKT Partners, Member Equity fill in the blank 6ccb0bf5d07a01f_17 fill in the blank 6ccb0bf5d07a01f_18 Madison Sanders, Member Equity fill in the blank 6ccb0bf5d07a01f_20 fill in the blank 6ccb0bf5d07a01f_21 Observer Newspaper, LLC, Member Equity fill in the blank 6ccb0bf5d07a01f_23 fill in the blank 6ccb0bf5d07a01f_24 WLKT Partners, Drawing fill in the blank 6ccb0bf5d07a01f_26 fill in the blank 6ccb0bf5d07a01f_27 Madison Sanders, Drawing fill in the blank 6ccb0bf5d07a01f_29 fill in the blank 6ccb0bf5d07a01f_30 Observer Newspaper, LLC, Drawing fill in the blank 6ccb0bf5d07a01f_32 fill in the blank 6ccb0bf5d07a01f_33 Feedback b. Close revenues and expenses to the member equity accounts. Close the drawing accounts to the respective equity accounts. c. Prepare a statement of members' equity for 20Y2. If an amount box does not require an entry, leave it blank. Marvel Media, LLC Statement of Members' Equity For the Year Ended December 31, 20Y2 WLKT Partners Madison Sanders Observer Newspaper, LLC Total Balances, January 1, 20Y2 $fill in the blank 5a897602603b074_1 $fill in the blank 5a897602603b074_2 $fill in the blank 5a897602603b074_3 $fill in the blank 5a897602603b074_4 Capital additions fill in the blank 5a897602603b074_5 fill in the blank 5a897602603b074_6 fill in the blank 5a897602603b074_7 fill in the blank 5a897602603b074_8 $fill in the blank 5a897602603b074_9 $fill in the blank 5a897602603b074_10 $fill in the blank 5a897602603b074_11 $fill in the blank 5a897602603b074_12 Net income for the year fill in the blank 5a897602603b074_13 fill in the blank 5a897602603b074_14 fill in the blank 5a897602603b074_15 fill in the blank 5a897602603b074_16 $fill in the blank 5a897602603b074_17 $fill in the blank 5a897602603b074_18 $fill in the blank 5a897602603b074_19 $fill in the blank 5a897602603b074_20 Member withdrawals fill in the blank 5a897602603b074_21 fill in the blank 5a897602603b074_22 fill in the blank 5a897602603b074_23 fill in the blank 5a897602603b074_24 Balances, December 31, 20Y2 $fill in the blank 5a897602603b074_25 $fill in the blank 5a897602603b074_26 $fill in the blank 5a897602603b074_27 $fill in the blank 5a897602603b074_28
Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 20Y2, the three members had equity of $285,000, $70,000, and $170,000, respectively. WLKT Partners contributed an additional $70,000 to Marvel, Media, LLC, on June 1, 20Y2. Madison Sanders received an annual salary allowance of $165,300 during 20Y2. The members’ equity accounts are also credited with 12% 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 Marvel Media, LLC, for 20Y2 were $1,253,532, $833,532 and $420,000 respectively. Amounts equal to the salary and interest allowances were withdrawn by the members. a. Determine the division of income among the three members. If an amount box does not require an entry, leave it blank. Schedule of Division of Income WLKT Partners Madison Sanders Observer Newspaper, LLC Total Salary allowance fill in the blank ab13ed084fdffd4_1 $fill in the blank ab13ed084fdffd4_2 fill in the blank ab13ed084fdffd4_3 $fill in the blank ab13ed084fdffd4_4 Interest allowance $fill in the blank ab13ed084fdffd4_5 fill in the blank ab13ed084fdffd4_6 $fill in the blank ab13ed084fdffd4_7 fill in the blank ab13ed084fdffd4_8 Remaining income (4:3:3) fill in the blank ab13ed084fdffd4_9 fill in the blank ab13ed084fdffd4_10 fill in the blank ab13ed084fdffd4_11 fill in the blank ab13ed084fdffd4_12 Net income $fill in the blank ab13ed084fdffd4_13 $fill in the blank ab13ed084fdffd4_14 $fill in the blank ab13ed084fdffd4_15 $fill in the blank ab13ed084fdffd4_16 Feedback a. Set up a column for each member and a total column. Allocate salary allowances, then distribute the remaining income based on the income sharing agreement. b. Prepare the journal entries to close the (1) net income and (2) withdrawals to the individual member equity accounts. For a compound entry, if an amount box does not require an entry, leave it blank. (1) Revenues fill in the blank 6ccb0bf5d07a01f_2 fill in the blank 6ccb0bf5d07a01f_3 Expenses fill in the blank 6ccb0bf5d07a01f_5 fill in the blank 6ccb0bf5d07a01f_6 WLKT Partners, Member Equity fill in the blank 6ccb0bf5d07a01f_8 fill in the blank 6ccb0bf5d07a01f_9 Madison Sanders, Member Equity fill in the blank 6ccb0bf5d07a01f_11 fill in the blank 6ccb0bf5d07a01f_12 Observer Newspaper, LLC, Member Equity fill in the blank 6ccb0bf5d07a01f_14 fill in the blank 6ccb0bf5d07a01f_15 (2) WLKT Partners, Member Equity fill in the blank 6ccb0bf5d07a01f_17 fill in the blank 6ccb0bf5d07a01f_18 Madison Sanders, Member Equity fill in the blank 6ccb0bf5d07a01f_20 fill in the blank 6ccb0bf5d07a01f_21 Observer Newspaper, LLC, Member Equity fill in the blank 6ccb0bf5d07a01f_23 fill in the blank 6ccb0bf5d07a01f_24 WLKT Partners, Drawing fill in the blank 6ccb0bf5d07a01f_26 fill in the blank 6ccb0bf5d07a01f_27 Madison Sanders, Drawing fill in the blank 6ccb0bf5d07a01f_29 fill in the blank 6ccb0bf5d07a01f_30 Observer Newspaper, LLC, Drawing fill in the blank 6ccb0bf5d07a01f_32 fill in the blank 6ccb0bf5d07a01f_33 Feedback b. Close revenues and expenses to the member equity accounts. Close the drawing accounts to the respective equity accounts. c. Prepare a statement of members' equity for 20Y2. If an amount box does not require an entry, leave it blank. Marvel Media, LLC Statement of Members' Equity For the Year Ended December 31, 20Y2 WLKT Partners Madison Sanders Observer Newspaper, LLC Total Balances, January 1, 20Y2 $fill in the blank 5a897602603b074_1 $fill in the blank 5a897602603b074_2 $fill in the blank 5a897602603b074_3 $fill in the blank 5a897602603b074_4 Capital additions fill in the blank 5a897602603b074_5 fill in the blank 5a897602603b074_6 fill in the blank 5a897602603b074_7 fill in the blank 5a897602603b074_8 $fill in the blank 5a897602603b074_9 $fill in the blank 5a897602603b074_10 $fill in the blank 5a897602603b074_11 $fill in the blank 5a897602603b074_12 Net income for the year fill in the blank 5a897602603b074_13 fill in the blank 5a897602603b074_14 fill in the blank 5a897602603b074_15 fill in the blank 5a897602603b074_16 $fill in the blank 5a897602603b074_17 $fill in the blank 5a897602603b074_18 $fill in the blank 5a897602603b074_19 $fill in the blank 5a897602603b074_20 Member withdrawals fill in the blank 5a897602603b074_21 fill in the blank 5a897602603b074_22 fill in the blank 5a897602603b074_23 fill in the blank 5a897602603b074_24 Balances, December 31, 20Y2 $fill in the blank 5a897602603b074_25 $fill in the blank 5a897602603b074_26 $fill in the blank 5a897602603b074_27 $fill in the blank 5a897602603b074_28
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 3DQ
Related questions
Question
Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 20Y2, the three members had equity of $285,000, $70,000, and $170,000, respectively. WLKT Partners contributed an additional $70,000 to Marvel, Media, LLC, on June 1, 20Y2. Madison Sanders received an annual salary allowance of $165,300 during 20Y2. The members’ equity accounts are also credited with 12% 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 Marvel Media, LLC, for 20Y2 were $1,253,532, $833,532 and $420,000 respectively. Amounts equal to the salary and interest allowances were withdrawn by the members.
a. Determine the division of income among the three members. If an amount box does not require an entry, leave it blank.
| Schedule of Division of Income | ||||
| WLKT Partners | Madison Sanders | Observer Newspaper, LLC | Total | |
| Salary allowance | fill in the blank ab13ed084fdffd4_1 | $fill in the blank ab13ed084fdffd4_2 | fill in the blank ab13ed084fdffd4_3 | $fill in the blank ab13ed084fdffd4_4 |
| Interest allowance | $fill in the blank ab13ed084fdffd4_5 | fill in the blank ab13ed084fdffd4_6 | $fill in the blank ab13ed084fdffd4_7 | fill in the blank ab13ed084fdffd4_8 |
| Remaining income (4:3:3) | fill in the blank ab13ed084fdffd4_9 | fill in the blank ab13ed084fdffd4_10 | fill in the blank ab13ed084fdffd4_11 | fill in the blank ab13ed084fdffd4_12 |
| Net income | $fill in the blank ab13ed084fdffd4_13 | $fill in the blank ab13ed084fdffd4_14 | $fill in the blank ab13ed084fdffd4_15 | $fill in the blank ab13ed084fdffd4_16 |
a. Set up a column for each member and a total column. Allocate salary allowances, then distribute the remaining income based on the income sharing agreement.
b. Prepare the
| (1) | Revenues | fill in the blank 6ccb0bf5d07a01f_2 | fill in the blank 6ccb0bf5d07a01f_3 |
| Expenses | fill in the blank 6ccb0bf5d07a01f_5 | fill in the blank 6ccb0bf5d07a01f_6 | |
| WLKT Partners, Member Equity | fill in the blank 6ccb0bf5d07a01f_8 | fill in the blank 6ccb0bf5d07a01f_9 | |
| Madison Sanders, Member Equity | fill in the blank 6ccb0bf5d07a01f_11 | fill in the blank 6ccb0bf5d07a01f_12 | |
| Observer Newspaper, LLC, Member Equity | fill in the blank 6ccb0bf5d07a01f_14 | fill in the blank 6ccb0bf5d07a01f_15 | |
| (2) | WLKT Partners, Member Equity | fill in the blank 6ccb0bf5d07a01f_17 | fill in the blank 6ccb0bf5d07a01f_18 |
| Madison Sanders, Member Equity | fill in the blank 6ccb0bf5d07a01f_20 | fill in the blank 6ccb0bf5d07a01f_21 | |
| Observer Newspaper, LLC, Member Equity | fill in the blank 6ccb0bf5d07a01f_23 | fill in the blank 6ccb0bf5d07a01f_24 | |
| WLKT Partners, Drawing | fill in the blank 6ccb0bf5d07a01f_26 | fill in the blank 6ccb0bf5d07a01f_27 | |
| Madison Sanders, Drawing | fill in the blank 6ccb0bf5d07a01f_29 | fill in the blank 6ccb0bf5d07a01f_30 | |
| Observer Newspaper, LLC, Drawing | fill in the blank 6ccb0bf5d07a01f_32 | fill in the blank 6ccb0bf5d07a01f_33 |
b. Close revenues and expenses to the member equity accounts. Close the drawing accounts to the respective equity accounts.
c. Prepare a statement of members' equity for 20Y2. If an amount box does not require an entry, leave it blank.
| Marvel Media, LLC | ||||
| Statement of Members' Equity | ||||
| For the Year Ended December 31, 20Y2 | ||||
| WLKT Partners | Madison Sanders | Observer Newspaper, LLC | Total | |
| Balances, January 1, 20Y2 | $fill in the blank 5a897602603b074_1 | $fill in the blank 5a897602603b074_2 | $fill in the blank 5a897602603b074_3 | $fill in the blank 5a897602603b074_4 |
| Capital additions | fill in the blank 5a897602603b074_5 | fill in the blank 5a897602603b074_6 | fill in the blank 5a897602603b074_7 | fill in the blank 5a897602603b074_8 |
| $fill in the blank 5a897602603b074_9 | $fill in the blank 5a897602603b074_10 | $fill in the blank 5a897602603b074_11 | $fill in the blank 5a897602603b074_12 | |
| Net income for the year | fill in the blank 5a897602603b074_13 | fill in the blank 5a897602603b074_14 | fill in the blank 5a897602603b074_15 | fill in the blank 5a897602603b074_16 |
| $fill in the blank 5a897602603b074_17 | $fill in the blank 5a897602603b074_18 | $fill in the blank 5a897602603b074_19 | $fill in the blank 5a897602603b074_20 | |
| Member withdrawals | fill in the blank 5a897602603b074_21 | fill in the blank 5a897602603b074_22 | fill in the blank 5a897602603b074_23 | fill in the blank 5a897602603b074_24 |
| Balances, December 31, 20Y2 | $fill in the blank 5a897602603b074_25 | $fill in the blank 5a897602603b074_26 | $fill in the blank 5a897602603b074_27 | $fill in the blank 5a897602603b074_28 |
c. Set up a column for each member and a total column. Add additional investments and net income allocations to beginning capital balances, and subtract withdrawals to obtain ending capital for each partner and the total equity.
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