How do I transfer my account to Ipad2 from IPad1?

I am giving my earlier model IPAD to a friend and want to remove my account info from the old Ipad and transnfer it to the new Ipad2. How do I do this?

the previous answers are accurate, but to make sure everything you want is moved over.
1. connect your old ipad
a. in itunes click file - transfer purchases from (name) ipad
a.1.   IF you have not authorised your computer it will ask you to do so, enter itunes user Id, pw, then select authorise.
b. right click on your ipad's name (under devices on the left column in itunes) and select backup
c. sync your information (if you havn't allready done so)
d. here is the choice you have, either select the restore in the summary tab (center of itunes) and restore as new, or select on the ipad (settings - general - reset - reset all settings, then erase content) - make sure to not let it sync after restore by slide to cancel sync.   verify the information is gone by going to the
settings - store - (should be no itunes account showing)
2. new ipad,  after setting up your wifi or 3g connection which ever applies go to settings - store - sign in.
a. restore the ipad2 from the backup of the ipad (update if required ipad2 ios version must be same or higher then ipad ios version)
b. sync your apps/music/itunes content to your device.
c. verify mail settings/other personal information/configurations
d. enjoy
c. also always helpful to make a backup after completing the processes.. just in case 

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