Comprehensive Case Study - Chapters 1-4 Razul and Amy decided to start a partnership called SA Consulting on January 1, 2020. SA Consulting assists business owners with their accounting needs. Each partner contributed a number of items to the partnership, which are listed below. All tangible assets are listed at their market value. Razul Cash Equipment $40,000 Cash 190,000 Furniture Bank Loan 80,000 Accounts Payable Amy $60,000 70,000 30,000 On March 1, Razul and Amy added a new partner to the business, Sheila. Sheila will contribute $100,000 and receive a 35% share of the business. Use the capital balances from January 1 to determine any bonuses. Assume the existing partners will split any bonus evenly. During the year, Razul and Amy withdrew $20,000 and $15,000 respectively and the business reported a net income of $400,000 Their partnership agreement provided for sharing of net income (loss) on the following basis: 1. Salary of $60,000 is allocated to Razul, $50,000 to Amy, and $20,000 to Sheila. 2. Interest is allocated at 7% of each partner's opening capital balance. 3. Remainder is shared where Razul gets 40%, Amy gets 25%, and Sheila gets 35%. g) After dividing the income for the year, all parties agreed to liquidate the partnership. The values of the assets and liabilities a shown below. The furniture is sold for $54,000 and all other assets are sold at their given values. Any gains or losses from liquidation are split evenly among all partners. Cash $482,000 Accounts Receivable 50,000 Net Equipment 247,000 Net Furniture 84,000 Accounts Payable 36,000 Bank Loan 112,000 Prepare the journal entries to sell the assets, distribute any gains or losses to the partners, pay the liabilities and distribute the cash to the partners. B 9 Date D 1 5 B 9 D 1 2 B 4 5 6 7 8 9 0 1 Account Title and Explanation Debit Credit