Dividing LLC Income Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $59,000 and $47,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:2. The two members withdraw amount equals to their salary allowances. Revenues were $668,000 and expenses where $520,000, for net income of $148,000. a. Determine the division of $148,000 net income for the year. Schedule of division of net income Farley Clark Total Salary allowance $________ ________ ________ Remaining Income $________ ________ ________ Net Income $________ ________ ________ b. Provide the journal entries to close the revenues and expenses account for both members.
Dividing LLC Income Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $59,000 and $47,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:2. The two members withdraw amount equals to their salary allowances. Revenues were $668,000 and expenses where $520,000, for net income of $148,000. a. Determine the division of $148,000 net income for the year. Schedule of division of net income Farley Clark Total Salary allowance $________ ________ ________ Remaining Income $________ ________ ________ Net Income $________ ________ ________ b. Provide the journal entries to close the revenues and expenses account for both members.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dividing LLC Income
Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $59,000 and $47,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:2. The two members withdraw amount equals to their salary allowances. Revenues were $668,000 and expenses where $520,000, for net income of $148,000.
a. Determine the division of $148,000 net income for the year.
Schedule of division of net income
| Farley | Clark | Total | |
| Salary allowance | $________ | ________ | ________ |
| Remaining Income | $________ | ________ | ________ |
| Net Income | $________ | ________ | ________ |
b. Provide the
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