Ben Bowman and Savannah Mapes formed a limited liability company with an operating agreement that provided a

Question:

Ben Bowman and Savannah Mapes formed a limited liability company with an operating agreement that provided a salary allowance of $75,000 and $60,000 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 $188,000 net income for the year.
(b) Provide journal entries to close the
(1) Income summary and
(2) Drawing accounts for the two members.