Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dividing LC Income Martin Forley and Ashley Clark formed a limited liabiliy company with an operating agreement that provided a salary allowance of $40,000 and

image text in transcribed
Dividing LC Income Martin Forley and Ashley Clark formed a limited liabiliy company with an operating agreement that provided a salary allowance of $40,000 and $30,000 to each member, respectively, in addition, the operating agreement specifled an income-sharing ratio of 3:2. The two members withdrew amounts equal to their salary ailowances. Revenues were $668,000 and expenses were $20,000, 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 ogreement. 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions