Chapter 12 Homework The ledger of Camila Ramirez and Ping Xue, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 2012: Ramirez and Xue Trial Balance Cash Accounts Receivable Supplies Land Building December 31, 20Y2 Debit Balances Credit Balances 44,900 42,000 1,600 107,000 116,300 Accumulated Depreciation-Building 66,900 Office Equipment 49,200 Accumulated Depreciation-Office Equipment 20,800 Accounts Payable Salaries Payable 31,900 3,400 Camila Ramirez, Capital 110,000 Camila Ramirez, Drawing 481,200 Ping Xue, Capital 64,200 Ping Xue, Drawing 69,600 Professional Fees 385,100 Salary Expense 156,200 Depreciation Expense-Building 15,500 Property Tax Expense 9,600 Heating and Lighting Expense 7,700 Supplies Expense 5,600 Depreciation Expense-Office Equipment 4,000 Miscellaneous Expense 3,300 682,300 682,300 The balance in Xue' capital account includes an additional investment of $11,000 made on May 5, 2012. Required: 1. Prepare an income statement for 2012, indicating the division of net income. The partnership agreement provides for salary allowances of $42,000 to Ramirez and $51,000 to Xue, allowances of 10% on each partner's capital balance at the beginning of the fiscal year,