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Exploit Media, LLC$,$ has three members: WACS Partners, Elyse O$$Reilly$,$ and Encounter Newspaper, LLC$.$ On January $1,20$Y$2,$ the three members had equity of $$218,800,$ $$36,100,$ and $$145,000,$ respectively. WACS Partners contributed an additional $$53,500$ to Exploit Media, LLC$,$ on June $1,20$Y$2.$ Elyse O$$Reilly received an annual salary allowance of $$53,700$ during $20$Y$2.$ The members$$ equity accounts are also credited with $10\%$ interest on each member$$s January $1$ capital balance. Any remaining income is to be shared in the ratio of $4$:$3$:$3$ among the three members. The revenues, expenses, and net income for Exploit Media, LLC$,$ for $20$Y$2$ were $$1,203,700,866,400$ and $$337,300$ respectively. Amounts equal to the salary and interest allowances were withdrawn by the members.

Required:

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

b$.$ Prepare the journal entry to close the revenues, expenses, and withdrawals to the individual member equity accounts. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

c$.$ Prepare a statement of members$$ equity for $20$Y$2.$ A decrease to members$$ equity should be entered as a negative amount. If an amount box does not require an entry, leave it blank.

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

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