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