Sharp and Townson had capital balances of $80,000 and $150,000,respectively on January 1, 2014 of the current year. On May 8,Sharp invested an additional $20,000 in the partnership (alreadyentered). During the year, Sharp and Townson withdrew $35,000 and$55,000, respectively (Already entered). At the end of the year,there was $500,000 balance in the 'Revenue' account and $380,000 inthe 'Expenses' account. Sharp and Townson have agreed to split on a2:1 basis, respectively. (xx.xx%)
1. Journalize the entries to close the revenueand expenses and the drawing accounts.
2. Prepare the statement of partner's equityfor the current year.
