Chapter 12 Homework Dividing LLC Income Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $63,000 and $50,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:5. 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 Farley Clark Total Salary allowance 63,000 50,000 Remaining income 21,600 14,400 36,000 Net income 84,600 64,400 148,000 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 668,000 Expenses 520,000 Martin Farley, Member Equity Ashley Clark, Member Equity 84,600 X 0 64,400 X (2) Martin Farley, Member Equity Ashley Clark, Member Equity Martin Farley, Drawing Ashley Clark, Drawing 63,000 50,000 63,000 0 50,000