The capital accounts of Walt Bigney and Dan Harris have balances of $80,000 and $95,000, respectively, on January 1, 2006, the beginning of the current fiscal year. On April 10, Bigney invested an additional $10,000. During the year, Bigney and Harris withdrew $72,000 and $84,000, respectively, and net income for the year was $160,000.

The articles of partnership make no reference to the division of net income.

a. Journalize the entries to close

(1) The income summary account

(2) The drawing accounts.

b. Prepare a statement of partners’ equity for the current year for the partnership of Bigney and Harris.