Determine the division of $148,000 net income between the partners.

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Answer 1

Question

Chapter 12, Problem 7E

a.

To determine

Determine the division of $148,000 net income between the partners.

b. 1

To determine

Provide the journal entries to close the revenues and expenses for the two members.

c.

To determine

Explain if the net income was less than the sum of salary allowance, how would income is divided between two members?

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Dividing LLC Income Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $59,000 and $47,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:5. 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 $ $ $ 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. (1) (2) c. If the net income were less than the sum of the…

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Dividing LLC Income Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $59,000 and $47,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:2. The two members withdraw amount equals to their salary allowances. Revenues were $668,000 and expenses where $520,000, for 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 $________ ________ ________ Remaining Income $________ ________ ________ Net Income $________ ________ ________ b. Provide the journal entries to close the revenues and expenses account for both members.

Answer 2

Question

Chapter 12, Problem 7E

a.

To determine

Determine the division of $148,000 net income between the partners.

b. 1

To determine

Provide the journal entries to close the revenues and expenses for the two members.

c.

To determine

Explain if the net income was less than the sum of salary allowance, how would income is divided between two members?

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Answer 3

Question

Chapter 12, Problem 7E

a.

To determine

Determine the division of $148,000 net income between the partners.

b. 1

To determine

Provide the journal entries to close the revenues and expenses for the two members.

c.

To determine

Explain if the net income was less than the sum of salary allowance, how would income is divided between two members?

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Answer 4

Question

Chapter 12, Problem 7E

a.

To determine

Determine the division of $148,000 net income between the partners.

b. 1

To determine

Provide the journal entries to close the revenues and expenses for the two members.

c.

To determine

Explain if the net income was less than the sum of salary allowance, how would income is divided between two members?

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 7E

a.

To determine

Determine the division of $148,000 net income between the partners.

b. 1

To determine

Provide the journal entries to close the revenues and expenses for the two members.

c.

To determine

Explain if the net income was less than the sum of salary allowance, how would income is divided between two members?

Answer 6

Chapter 12, Problem 7E

a.

To determine

Determine the division of $148,000 net income between the partners.

Answer 7

Chapter 12, Problem 7E

a.

To determine

Determine the division of $148,000 net income between the partners.

Answer 8

b. 1

To determine

Provide the journal entries to close the revenues and expenses for the two members.

Answer 9

b. 1

To determine

Provide the journal entries to close the revenues and expenses for the two members.

Answer 10

c.

To determine

Explain if the net income was less than the sum of salary allowance, how would income is divided between two members?

Answer 11

c.

To determine

Explain if the net income was less than the sum of salary allowance, how would income is divided between two members?

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 12 - Prob. 1DQ Ch. 12 - Prob. 2DQ Ch. 12 - Prob. 3DQ Ch. 12 - Prob. 4DQ Ch. 12 - Prob. 5DQ Ch. 12 - Prob. 6DQ Ch. 12 - Prob. 7DQ Ch. 12 - Prob. 8DQ Ch. 12 - Prob. 9DQ Ch. 12 - Prob. 10DQ

Determine the division of $148,000 net income between the partners.

Solution Summary: The author explains the division of 148,000 net income between the partners.

Determine the division of $148,000 net income between the partners.

Provide the journal entries to close the revenues and expenses for the two members.

Explain if the net income was less than the sum of salary allowance, how would income is divided between two members?

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Chapter 12 Solutions