macro media llc has three members wlkt partners amanda nelso 263158

Macro Media, LLC, has three members: WLKT Partners, Amanda Nelson, and Daily Sentinel Newspaper, LLC. On January 1, 2012, the three members had equity of $250,000, $50,000, and $140,000, respectively. WLKT Partners contributed an additional $50,000 to Macro Media, LLC, on June 1, 2012. Amanda Nelson received an annual salary allowance of $88,700 during 2012. 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 net income for Macro Media, LLC, for 2012 was $720,000. Amounts equal to the salary and interest allowances were withdrawn by the members.

a. Determine the division of income among the three members.

b. Prepare the journal entry to close the net income and withdrawals to the individual member equity accounts.

c. Prepare a statement of members’ equity for 2012.

d. What are the advantages of an income-sharing agreement for the members of this LLC?

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