Instructions

Chart of Accounts

First Question

General Journal

Final Question

Instructions Revenues were $$668,000$ and expenses were $$520,000,$ tor a net income of $$148,000.$

Note: The reduction in members' equity from withdrawals would be disclosed on the statement of members' equity.

a$.$ Determine the division of $$148,000$ net income for the year.

b$.$ On December $31,$ provide joumal entries to close the $(1)$ revenues and expenses and $(2)$ drawing accounts for the two members.

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$?$

$\backslash$table$[[$First Question,,,$],[$a$.$ Determine the division of $$148,000$ net income for the year.,,,$],[,,,],[$Salary allowance,,,$],[$Remaining income,,,$],[$Net income,,,$]]$

General Journal

Final Question

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, 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 salary 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.

b$.$ On December $31,$ provide joumal entries to close the $(1)$ revenues and expenses and $(2)$ drawing accounts for the two members.

General Journal Instructions

PAGE $11$

$\backslash$table$[[$JOURNAL$],[,$DATE,DESCRIPTION,POST. REF.,DEBIT,CREDIT,$\backslash$table$[[$Arr$],[$ASSETS$]],\backslash$table$[[$IINTING$,$ FN$||],[$LIABILITIES$]],\backslash$table$[[$TINN$],[$EQUITY$]]],[1,,$Closing Entries,,,,,,$],[2,,,,,,,,],[3,,,,,,,,],[4,,,,,,,,],[5,,,,,,,,],[6,,,,,,,,],[7,,,,,,,,],[8,,,,,,,,],[9,,,,,,,,]]$