Question

but here. Search Your Package Tracked x P O bron Bro Bron N sho wa > + - w.com/in/takeAssignment/takeAssignment Main.dolinvoker assignments&takeAssignmentSessionLocator assignment-takeinprogree eBook Calculator Printem Dividing LLC Income Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $70,000 and $56,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:1. The two members withdrew amounts equal to their salary allowances. Revenues were $668,000 and expenses were $520,000, for a net income of $148,000. a. Determine the division of $148,000 net income for the year Schedule of Division of Net Income Salary allowance Income Net income b. Provide Journal entries to close the (1) revenues and expenses box does not require an entry leave it bank AVDI TRITY UOP FIGH BNM

Answer 1

a.

	Farley	Clark	Total
Salary allowance	70,000	56,000	126,000
Remaining income [(148,000-126,000) in the ratio 3:1	16500	5500	22000
Net Income	86,500	61,500	148,000

b.

1	Revenue	668000
	Expenses		520000
	Martin Farley, member equity		86,500
	Ashley Clark, member equity		61,500
2	Martin Farley, member equity	70,000
	Ashley Clark, member equity	56,000
	Martin Farley, drawing		70,000
	Ashley Clark, drawing		56,000

c. Blank 1- both

Blank 2 - loss

Blank 3- income sharing