Income Division, Journal Entries, and Members' Equity Statement for Marvel Media, LLC in 2016

A. How is the income divided among the three members of Marvel Media, LLC for the year 2016? B. What are the journal entries needed to close the net income and withdrawals to the individual member equity accounts? C. Can you prepare a statement of members' equity for the year 2016 for Marvel Media, LLC?

A. The income division among the three members of Marvel Media, LLC in 2016 is as follows: - WLKT Partners: $144,000 - Madison Sanders: $108,000 - Observer Newspaper, LLC: $108,000 B. The journal entries to close the net income and withdrawals for Marvel Media, LLC in 2016 are: - Closing net income: Income Summary: $360,000 WLKT Partners\' Capital: $144,000 Madison Sanders\' Capital: $108,000 Observer Newspaper, LLC Capital: $108,000 - Closing withdrawals: WLKT Partners\' Capital: $50,000 Cash: $50,000 Madison Sanders\' Capital: $55,000 Cash: $55,000 Observer Newspaper, LLC Capital: $55,000 Cash: $55,000 C. The statement of members' equity for Marvel Media, LLC in 2016 is as follows: - WLKT Partners\' ending balance: $364,000 - Madison Sanders\' ending balance: $52,000 - Observer Newspaper, LLC\'s ending balance: $229,000

Income Division Among Members

To determine the division of income among the three members of Marvel Media, LLC for 2016, we use the ratio of their equity contributions. WLKT Partners contributed 4/10, while Madison Sanders and Observer Newspaper, LLC contributed 3/10 each. Multiplying these ratios by the net income of $360,000 gives us the respective income share for each member.

Journal Entries for Net Income and Withdrawals

The journal entries are crucial for closing the net income and withdrawals to the individual member equity accounts. By properly allocating the income and withdrawals, the equity balances of each member can be accurately reflected in the financial records.

Statement of Members' Equity for 2016

The statement of members' equity shows the changes in each member's equity account throughout the year. It includes the beginning balance, additional contributions, interest earned, share of income, withdrawals, and ending balance for WLKT Partners, Madison Sanders, and Observer Newspaper, LLC for Marvel Media, LLC in 2016.
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