Dividing LLC Income

Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $70,000 and $56,000 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	$fill in the blank e6b3d5fa4013fff_1	$fill in the blank e6b3d5fa4013fff_2	$fill in the blank e6b3d5fa4013fff_3
Remaining income	fill in the blank e6b3d5fa4013fff_4	fill in the blank e6b3d5fa4013fff_5	fill in the blank e6b3d5fa4013fff_6
Net income	$fill in the blank e6b3d5fa4013fff_7	$fill in the blank e6b3d5fa4013fff_8	$fill in the blank e6b3d5fa4013fff_9

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)		fill in the blank 43f3e4f03032f85_2	fill in the blank 43f3e4f03032f85_3
		fill in the blank 43f3e4f03032f85_5	fill in the blank 43f3e4f03032f85_6
		fill in the blank 43f3e4f03032f85_8	fill in the blank 43f3e4f03032f85_9
		fill in the blank 43f3e4f03032f85_11	fill in the blank 43f3e4f03032f85_12
(2)		fill in the blank 43f3e4f03032f85_14	fill in the blank 43f3e4f03032f85_15
		fill in the blank 43f3e4f03032f85_17	fill in the blank 43f3e4f03032f85_18
		fill in the blank 43f3e4f03032f85_20	fill in the blank 43f3e4f03032f85_21
		fill in the blank 43f3e4f03032f85_23	fill in the blank 43f3e4f03032f85_24