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  3. sharp and townson had capital balances of $60,000

Sharp and Townson had capital balances of $60,000 and $120,000, respectively, on January 1 of...

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Accounting

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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 60,000 120,000 Total Partnership Capital Balance, January 1 180,000 Capital additions 10.000 10.000 Subtotal 70,000 120.000 190.000 Net Income for the year -25,000 -45.000 70,000 45.000 75.000 120,000 Subtotal Less partner withdrawals 60,000 30,000 90.000 Balance, December 31 105.000 105,000 $ 210,000 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

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