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Lopez and Gomez are members in an LLC that reports net income of $135,000. An agreement states that Lopez receives a $20,500 salary allowance
Lopez and Gomez are members in an LLC that reports net income of $135,000. An agreement states that Lopez receives a $20,500 salary allowance and Gomez receives a $50,500 salary allowance. Any remaining income or loss is to be shared by Lopez and Gomez in a 2:3 ratio (in percents: Lopez, 40%; Gomez, 60%). 1. Determine each member's share of net income. 2. Prepare the entry to record the closing of Income Summary. Hint: The business is a limited liability company (LLC), so equity accounts are Lopez, Member Equity and Gomez, Member Equity. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the entry to record the closing of Income Summary. Hint: The business is a limited liability comp are "Lopez, Member Equity" and "Gomez, Member Equity".
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