Exploit Media, LLC, has three members: WACS Partners, Elyse O’Reilly, and Encounter Newspaper, LLC

. Transcribed Image Text: Instructions
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 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. 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 $1,263,800, 891,900 and 5371,700 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interest allowances were withdrawn by the members.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 titles. CNOW journals do not use lines for jourmal explanations. Every line on a jourmal 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? Transcribed Image Text: Instructions
Chart of Accounts
Schedule of Division of Income
Journal
Statement of Members’ Equity
Final Question
Journal
Statement of Members’ Equity
b.
not use lines for journ
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.
Exploit Media, LLC
Statement of Members’ Equity
For the Year Ended December 31, 20Y2
Encounter
WACS Partners
Elyse O’Reilly
Total
Newspaper, LLC
2 Balances, January 1, 20Y2
$200,000.00
$37,400.00
$163,500.00
$400,900.00
3 Capital additions
48,100.00
+ Net income for the year
5 Member withdrawals
6 Balances, December 31, 20Y2
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