On December 31, the Income Summary account of Madison Company has a debit balance of $34,000 after revenue of $36,000 and expenses of $70,000 were closed to the account. Madison Wells, Drawing has a debit balance of $3,700 and Madison Wells, Capital has a credit balance of $55,000. Required:

1. Record the journal entries necessary to complete closing the accounts.
2. What is the new balance of Madison Wells, Capital?