Dividing LLC income Instructions Chart of Accounts Starting Question Journal Final Question HI Instructions Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $36,500 and $30, 300 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:1. 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 Note: The reduction in members equity from withdrawals would be disclosed on the statement of members' equity. Required: A. Determine the division of $148,000 net income for the year B. On December 31, provide journal entries to close the () revenues and expenses and (2) drawing accounts for the two members. Refer to the Chart of Accounts for exact wording of account titles 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? Dividing LLC income Instructions Chart of Accounts Starting Question Journal Final Question Starting Question A. Determine the division of S148,000 net income for the year Farley Clark Total $ $ Salary allowance Remaining income Net Income $ $ $ eBook Dividing LLC income Instructions Chart of Accounts Starting Question Journal Final Question HI Journal B. On December 31, provide journal entries to close the (1) revenues and expenses and (2) drawing accounts for the two members. Refer to the Chart wording of account sites JOURNAL ACCOUNT ASSETS DATI BIST REE DEN CREDIT DESCRIPTION Closing Entries 2 4 5 eBOOK Dividing LLC income Instructions Chart of Accounts Starting Question Journal Final Question HI Final Question Cif the net income was less than the sum of the salary allowances, now 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, both members would still be with their salary allowances. From this amount, each partner would his or her share of the excess of the total satary allowance over the net income. Thus, the difference between the net income and total salary allowances would be allocated to each partner as a according to the income sharing ratio