Diviaing LLC Income

Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $$40,000$ and $$30,000$ to each member, respectively. In addition, the operat 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 incom Schedule of Division of Net Income

$\backslash$table$[[$Line Item Description,Farley,Clark$],[$Salary allowance,Total,$],[$Remaining income,,$],[$Net income,,$]]$

b$.$ Provide journal entries to close the $(1)$ revenues and expenses and $(2)$ drawing accounts for the two members. If an amount box does not require an entry, leave it blank.

$(1)$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$(2)$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

c$.$ If the net income was less than the sum of the salary allowances, how would income be divided between the two members of the LLC$?$

If the net income of the LLC was less than the sum of the salary allowances, $$ members would still be credited with their salary allowances. The difference between the net income and total sala allocated to each partner as$.$ :$.,$ according to the $$ ratio.