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Martin Farley and Ashley Clark formed a imited liability company with an operating agreement that provided a salary allowance of $38,100 and $29.100 to each

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Martin Farley and Ashley Clark formed a imited liability company with an operating agreement that provided a salary allowance of $38,100 and $29.100 to each member, respectively, in addition, the operating agreememt specified an income-sharing ratio of 3:1. The fwo members wichdrew arnounts equal to their salary allowances. Revences 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 disclosod on the statement of members' equily. Required: a. Determine the division of $148,000 net income for the yar. b. On December 31, provide joumal entries fo close the (1) reverues and expenses and (2) drawng accounts for the fwo menbers. Fefor to the chart of accounts for the exact wonding of the account nbes. CNOW, joumals do not use fines for joumal explanations. Every ine on a joumal page is used for debit or credit entries. CNOW joumals will automatically indent a ceodt ency when a credit amount is entered. c. If the net income was fess than the sum of the salary allowances, how would income be divided between the two members of the LCC ? a. Defermine the division of $148,000 net income for the yevar. b. On December 31 , provido joumal entries to close the (1) revenues and expenses and (2) drawing accounts for the fwo members. Alefer to the chart of accounts for the exact wond entry when a credit amount is entered. c. If the net income was less than the sum of the salary allowances, how would income bo divided befween the two members of the LLC? If the net income of the LLC was less than the sum of the salary allowances, beth members would still be with their salary aliowances. From this amount, each partne: would his or her share of the excess of the total salary alowance over the net income. Thus, the difference befween the net income and total salary aliowances would be whocated to each parther as a according to the income-sharing ratio

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