Dividing LLC Income

Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of

$$64,000$ and $$51,000$ to each member, respectively. In addition, the operating agreement specified an income$-$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 income for the year.

Schedule of Division of 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.

$(1)$