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%. Prepare the journal entry to record the payment of the first installment plus interest on May 31 Date Account Title and Explanation Debit Credit What would be the total note payable balance on May 31, 2021? How much of the loan would be considered current? Total note payable= Current portion= G 32 h) Prepare the journal entry to record the partner withdrawals of cash at December 31 for SC Consulting. 23456 Date Account Title and Explanation Debit H Credit 7 8 9 , 1 2 Be) Prepare a schedule showing the allocation of the net income to the partners of SC Consulting at year end. Net Income Total Razul $400,000 Amy Sheila