Razul and Amy decided to start a partnership called SA Consulting on January 1, 2020. Each of them contributed a number of items to the partnership, which are listed below. All tangible assets are listed at their market value.

RazulCash$40,000Equipment190,000Bank Loan80,000

AmyCash$60,000Furniture70,000Accounts Payable30,000

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.

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.

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%.

a) Prepare the journal entries to record the contributions of each partner to start the partnership.

b) Prepare schedule showing the changes in capital and ending capital balances after the admission of Sheila.

c) Prepare the journal entry to record the admission of the new partner on March 1.

d) Prepare the journal entry to record the partner withdrawals of cash.

e) Prepare schedule showing the allocation of the net income to the partners.

f) Prepare the journal entries to record the distribution of net income and the closing of the withdrawals accounts. Assume revenues and expenses have been closed to the income summary account.

g) After divding the income for the year, all parties agreed to liquidate the partnership. The values of the assets and liabilities are 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 84,00

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.