Question

One thing Calculator Print Item Dividing LLC Income Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $54,000 and $51,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:2. 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 alowances Remaining Income Net Income b. Provide journal entries to close the (1) revenues and expenses and (2) drawing accounts for the two members. For a compound transaction, if an amount box does not require an entry, leave it blank. Check My Work 2 more Check My Work uses remaining < Previous Next Email Instructor Save and Exit Submit Assignment for Grading

Answer 1

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Also Schedule of Division of Net Income ? farley Clark to feel $64000 $51,000 115,000 Salasy allowance Remaining Income 1. Net Income $19800 $13,200 $33,000 $$83,800 $64,400 $148000 Journel Ceutley | (2) | Revenues Alc ex #668.000 To Expenses All I TO Martin Pooley, Men der equity All To Ashley Clark, Momber equity All (o martin farley, Mumber equity All 2 $64,070 | Ashley Clark, mamber equity Al ar $51,000 To Martin Pasley, Drawing Alc l To Ashley Clask, Drawing Alc $5880,000 $ 83,800 $64.800 $64,000 $51,000 J ® If the nel Income of the LLC were less than the sum of the Salary allowances, both members would still be exedited with their Salary allowances. The difference between the net income and total Salary allowances would be allocated to each partners as a dednction . According to the income-sharing / ratio.