Joshua richards and taylor clark formed a limited liability

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Reference no: EM13610274

Joshua Richards and Taylor Clark formed a limited liability company with an operating agreement that provided a salary allowance of $60,000 and $50,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:2. The two members withdrew amounts equal to their salary allowances. a. Determine the division of $152,000 net income for the year. b. Provide journal entries to close the (1) income summary and (2) drawing accounts for the two members. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0". 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?

Reference no: EM13610274

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