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. If an amount box does not require an entry, leave it blank. Sharp and Townson Statement of Partnership Equity For the Year Ended December 31 Sharp, Capital Townson, Capital Total Partnership Capital Balance, December 31 Balance, January 1 Net Income for the year Net loss for the year Partner withdrawals b. Journalize the entries to close the revenue and expense accounts and the drawing accounts. If an amount box does not require an entry, leave it blank. Statement of Partnership Equity For the Year Ended December 31 Sharp, Capital Townson, Capital Total Partnership Capital Subtotal Cash Sull Expenses Revenue Townson, Capital b. Townson, Drawing to close the revenue and expense accounts and the drawing accounts. If an amount box does not require an entry, leave it blank. HII Previous Next