: a Search .. . LLC Net Income and Statement of Members\' Equty Marvel Media, LL

Question

: a Search .. . LLC Net Income and Statement of Members' Equty Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Oeserver Newspaper, LL.C. On January 1, 20Y2, the three members had equity of 120,000, 30,000, and $70,000, respectively. WLKT Partners contributed an additional 530,000 to Marvel, Media, LL.C, on June 3, 20Y2. Madison Sanders received an anrual salary alowance of $60,000 anng 20Y2·The meneer eenv acco ms are aise crested with 1,2% interns on each memberi auary oplal baan. Ary mang n me a to be shared in the ratio of 4:3:3 among the three members. The revenues, expenses, and net income for Marvel Media, L respectively. Amounts equal to the salary and incerest alowances were withdrawn by the members a. Determine the division of income among the three members If an amount box does not equine an entry, eave it b Schedule ef Division af WLXT Partners alary alowance 9 0

Explanation / Answer

A. division of income among partners:

Note: It is assumed that the net income given in the question is given after the deduction of the partner's salary and interest on capital.

b. Journal entries:

b.1: Distribution of salary, interest on capital and net profit.

Salary allowance

Interest on capital

Profit & loss a/c (net profit)

69600

26400

180000

To WLKT partners' capital

To Madison Sanders' capital

To Observer Newspaper's capital

86400

127200

62400

b.2: Withdrawal of salary and interest on capital:

WLKT partners' capital

Madison Sanders' capital

Observer Newspaper's capital

14400

73200

8400

C. Statement showing member's equity:

Particulars WLKT partners Madison Sanders Observer Newspaper Total Salary allowance 69600 69600 Interest allowance @12% 14400 3600 8400 26400 Remaining income (180000 @ 4:3:3) 72000 54000 54000 180000 Net income 86400 127200 62400

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.