Sharp and Townson Had Capital Balances of $60,000 and $120,000

Essay

Sharp and Townson had capital balances of $60,000 and $120,000, respectively, on January 1 of the current year. On May 8, Sharp invested an additional $10,000 in the partnership. During the year, Sharp and Townson withdrew $25,000 and $45,000, respectively. The revenue account at the end of the year had a balance of $600,000, and the expense account had a balance of $510,000. Sharp and Townson have agreed to split net income on a 2:1 basis.
(a)Prepare the statement of partnership equity for the current year.
(b)Journalize the entries to close the revenue and expense accounts and the drawing accounts.?