Answered step by step
Verified Expert Solution
Question
1 Approved Answer
14 Lopez and Gomez are members in an LLC that reports net income of $141,000. An agreement states that Lopez receives a $21,100 salary allowance
14 Lopez and Gomez are members in an LLC that reports net income of $141,000. An agreement states that Lopez receives a $21,100 salary allowance and Gomez receives a $51,100 salary allowance. Any remaining income or loss is to be shared by Lopez and Gomez in a 3:2 ratio (in percents: Lopez, 60%; Gomez, 40%). 1. Determine each member's share of net income. 2. Prepare the entry to record the closing of Income Summary. Hint: The business is a limited liability company (LLC), so equity accounts are "Lopez, Member Equity" and "Gomez, Member Equity". Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine each member's share of net income. Allocation of each member's Income Net income Salary allowances Balance of income Lopez Gomez Total 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started