pleasw note the ratio is 3:1. thanks

Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $61,000 and $49,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:1. 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 Farley Clark Total Salary allowance 61,000 49,000 110,000 Remaining income Net income b. Provide journal entries to close the (1) revenues and expenses and (2) drawing accounts for the two members. For a compound transaction, if an amount box does not require an entry, leave it blank. Revenues 668,000 (1) Expenses 520,000 Martin Farley, Member Equity Ashley Clark, Member Equity Martin Farley, Member Equity (2) Ashley Clark, Member Equity Drouloue Alovt Net income b. Provide journal entries to close the (1) revenues and expenses and (2) drawing accounts for the two members. For a compound transaction, if an amount box does not require an entry, leave it blank. (1) Revenues 668,000 Expenses 520,000 Martin Farley, Member Equity Ashley Clark, Member Equity Martin Farley, Member Equity Ashley Clark, Member Equity Martin Farley, Drawing Ashley Clark, Drawing (2) C. If the net income were 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 were less than the sum of the salary allowances, salary allowances. The difference between the net income and total salary allowances would be allocated to each partner as members would still be credited with their according to the ratio. Check My Work 2 more Check My Work uses remaining Previous Next