Journalize the entries to close income summary

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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. After closing all expense and revenue accounts at the end of the year, Income Summary has a credit balance of $90,000, that Sharp and Townson have agreed to split on a 2:1 basis, respectively.

(a) Journalize the entries to close the income summary account and the drawing accounts.

(b) Prepare the statement of owner's equity for the current year.

Reference no: EM13155148

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