Interactive Media, LLC, has three members: VC Partners, Colin Campella, and Active Graphics, LLC. On January 1, 20Y2, the three members had equity of $180,000, $45,000, and $110,000, respectively. VC Partners contributed an additional $50,000 to Interactive Media, LLC, on June 1, 20Y2. Colin Campella received an annual salary allowance of $104,400 during 20Y2. The members equity accounts are also credited with 12% interest on each members January 1 capital balance. Any remaining income is to be shared in the ratio of 4:3:3 among the three members. The revenues, expenses, and net income for Interactive Media, LLC, for 20Y2 were $962,121, $692,121 and $270,000, respectively. Amounts equal to the salary and interest allowances were withdrawn by the members.

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a. Determine the division of income among the three members. If an amount box does not require an entry, leave it blank.

Line Item Description	VC Partners	Colin Campella	Active Graphics, LLC	Total
Salary allowance	0	$104400	0	104400
Interest allowance	21600	5400	13200	40200
Remaining income (4:3:3)	50160	37620	37620	125400
Net income	71760	147420	50820	270000

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a. Set up a column for each member and a total column. Allocate salary allowances, consider interest allowance, then distribute the remaining income based on the income sharing agreement.

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b. Journalize the entry to close the revenues and expenses to the member equity accounts. If an amount box does not require an entry, leave it blank.

Transaction	Account	Debit	Credit
(1)	Revenues	962121	0
	Expenses	0	692121
	VC Partners, Member Equity	0	71760
	Colin Campella, Member Equity	0	147420
	Active Graphics, LLC, Member Equity	0	50820

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b. Close revenues and expenses to the member equity accounts.

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c. Journalize the closing journal entry for the member withdrawals of salary and interest. If an amount box does not require an entry, leave it blank.

Transaction	Account	Debit	Credit
(2)	VC Partners, Member Equity	21600	0
	Colin Campella, Member Equity	?	0
	Active Graphics, LLC, Member Equity	13200	0
	VC Partners, Drawing	0	21600
	colin Campella, Drawing	0	?
	Active Graphics, LLC, Drawing	0	13200

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c. Close the drawing accounts to the respective equity accounts.

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d. Prepare a statement of members equity for 20Y2. If an amount box does not require an entry, leave it blank. For amounts that should be subtracted, enter the amount with a minus sign.

Line Item Description	VC Partners	Colin Campella	Active Graphics, LLC	Total
Balances, January 1, 20Y2	180000	45000	110000	335000
Investment by member	50000	0	0	50000
Net income for the year	71760	147420	50820	270000
Member withdrawals	-21600	?	-13200	?
Balances, December 31, 20Y2	280160	?	147620	?