Problem - 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 $340,000, $85,000, and $205,000, respectively. WYXT Partners contributed an additional $90,000 to Intermedia, LLC, on June 1, 2014. Lindsey Wilson received an annual salary allowance of $197,200 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 $500,000. Amounts equal to the salary and interest allowances were withdrawn by the members.
a. Determine the division of income among the three members. If an amount box does not require an entry, leave it blank.
b. Prepare a statement of members' equity for 2014.