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 (already entered). During the year, Sharp and Townson withdrew $35,000 and $55,000, respectively (Already entered). After closing all expense and revenue accounts at the end of the year, Income Summary has a credit balance of $120,000, that Sharp and Townson have agreed to split on a 2:1 basis, respectively. (xx.xx%)

1. Journalize the entries to close the income summary account and the drawing accounts. (Steps 3 & 4 of closing.)

2. Prepare the statement of partner's equity for the current year.