Ch 12 Homework eBook Dividing LLC Income 1. EX.12-04 ALGO Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $57,000 and $46,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:1. TH 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. 2. EX.12-05 ALGO 3. EX. 12-07 ALGO a. Determine the division of $148,000 net income for the year. Schedule of Division of Net Income 4. EX. 12-09.ALGO 5. EX.12-15 ALGO Farley Clark Total Salary allowance 57,000 46,000 103,000 6. EX.12-27.ALGO Remaining income 33,750 11,250 45,000 Net income 90,750 57,250 148,000 Feedback Check My Work a. Set up a column for each partner and a total column. Allocate salary allowances, then distribute the remaining income based on the income sharing agreement. 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. (1) Revenues Expenses Martin Farley, Member Equity Ashley Clark, Member Equity (2) Martin Farley, Member Equity Ashley Clark, Member Equity Martin Farley, Drawing Ashley Clark, Drawing