LLC Net Income and Statement of Members\' Equity Intermedia, LLC, has three memb

Question

LLC Net Income and Statement of Members' Equity Intermedia, LLC, has three members: WYXT Partners, Lindsey Wilson, and Daily Sun Newspaper, LLC. On January 1, 2014, the three members had equity of $360,000, $90,000, and $215,000, respectively. WYxT Partners contributed an additional $90,000 to Intermedia, LLC, on June 1, 2014. Lindsey Wilson received an annual salary allowance of S208.800 during 2014. The members' equity accounts are also credited with 12% 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 Intermedia, LLC, for 2014 was $530,000. Amounts equal to the salary and interest allowances were withdrawn by the members.

Explanation / Answer

Schedule of division of income WYXT Partners Lindsey wilson Daily sun newspaper,LLC Total Salary allowance 0 208800 0 208800 Interest allowance 49500 10800 25800 86100 Remaning Income (4:3:3) 94040 70530 70530 235100 Net income 143540 290130 96330 530000 Debit($) Credit($) Income summery 530000 WYXT Partners Equity 143540 Lindsey wilson Equity 290130 Daily sun newspaper,LLC Equity 96330 WYXT Partners Equity 49500 Lindsey wilson Equity 219600 Daily sun newspaper,LLC Equity 25800 WYXT Partners Drawings 49500 Lindsey wilson Drawings 219600 Daily sun newspaper,LLC Drawings 25800 Statement of Member's Equity WYXT Partners Lindsey wilson Daily sun newspaper,LLC Total Member's Equity [Jan,1,2014] 360000 90000 215000 665000 Additional Investment 90000 90000 450000 90000 215000 755000 Net Income for the year 143540 290130 96330 530000 593540 380130 311330 1285000 Withdrawl during the year 49500 219600 25800 294900 Member's Equity [Dec,31,2014] 544040 160530 285530 990100

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