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). At the end of the year, there was a $500,000 balance in the 'Revenue' account and $380,000 in the 'Expenses' account. Sharp and Townson have agreed to split on a 2:1 basis, respectively.

1. Journalize the entries to close the revenue and expenses and the drawing accounts.

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

Answer rating: 100% (QA)

Journal entries to close the revenue and expenses and the drawing accounts Revenue Account De... View the full answer