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%. f) Prepare the journal entries to record the distribution of net income and the closing of the withdrawals accounts. Assume 5 revenues and expenses have been closed to the income summary account. 7 B Date Account Title and Explanation: Debit Credit