Martin Farley and Astley Clark formed a limited labily company w th an operating apreement that provided a salary allowanco of s2s, 100 and $29,100 to each merrber, tespectively In addition, the operating agreemert specified an income-sharing ratio of 3:1. The two members withdrew anourts equal to their salary aliowances. Aeverues were $6es,000 and expenses were 5520,000 , for a net income of $148,000. Note: The reduction in members' equity trom whichals would be disclesed on the statement of members' equity. Required: a. Determine the division of 5146,000 not noome for the year. b. On December 31, provide poumal entries to close the (I) revenues and expenses and (z) drawing accounts for the two members. Refor to the chart of accounts for the exact wonding of the acoount tegis. CNOW joumals do not use hies for joumal explanabions. Every ine on a joumal Aage is used for debt or credit entries. CNOW joumals will aufomaticaly indent a credi enty when a credt anount is entered. c. If the net hoome was iess than the sum of the salay allowances, how would income be divided betweon the two members of the LLC? a. Determine the division of $148,000 net income for the year. Dividing LLC Income c. If the net income was less than the sim of the salary albwances, how would income be dividod botween the two membors of bhe 1LC ? If the net income of the LC was less then the sum of the salary allowances, both members would stil be wth their salery allowances. From this amount, each parther would his or her shere of the excess of the lotal salary allowance over the net income. Thus, the diflerence betwcen the net income and total salary allowances would be aliocased to each parther as a , accoeding to the income-sharing rato. Feodback Chedk My Wark The members heve limbed Labilty even in they are active in the company. Thus, the members' personal assetsldues are legaly protected against the icsses of the LLC