Question 2: Khalid and Hashem are co-partners in the Alexandria Company. According to the partnership agreement the division of net income is 60%: 40% respectively Capital balances on January 1, 2019 were Khalid $70,000, and Hashem $50,000. The net income for 2019 is $40,000. Drawings during the year were Khalid $4,000, and Hashem $5,000. Required: (a) Journalize the allocation of net income. (b) Prepare the equity statement 1 Distribution of net income Khalid Hashem Total The journal entry to record profit distribution: Debit Credit Date Dec. 31 The equity statement Khalid Date Hashem Total