eBook Print Item Ramirez and Xue Trial Balance December 31, 2012 Debit Credit Balances Balances Cash 70,300 33,600 Accounts Receivable Supplies 5,800 Land 128,000 175,000 Building Accumulated Depreciation-Building 80,000 Office Equipment 42,000 25,300 Accumulated Depreciation-Office Equipment Accounts Payable 12,400 Salaries Payable 10,000 125,000 Camila Ramirez, Capital Camila Ramirez, Drawing 35,000 Ping Xue, Capital 155,000 Ping Xue, Drawing 50,000 Print Item COPIC Accumulated Depreciation-office Equipment Accounts Payable 25,300 12,400 Salaries Payable 10,000 Camila Ramirez, Capital Camila Ramirez, Drawing 125,000 35,000 Ping Xue, Capital 155,000 Ping Xue, Drawing 50,000 555,300 Professional Fees Salary Expense Depreciation Expense--Building 384,900 12,900 10,500 Heating and Lighting Expense 6,300 Depreciation Expense-Office Equipment Property Tax Expense 3,200 Supplies Expense 3,000 Miscellaneous Expense 2,500 963,000 963,000 The balance in Xue's capital account includes an additional investment of $20,000 made on May 5, 20Y2 Required: 1. Prepare an income statement for 2012, Indicating the division of net income. The partnership agreement provides for salary allowances of $50,000 to Ramirez and $65,000 to Xue, allowances of 12% on each partner's capital balance at the beginning of the fiscal year, and equal division of the remaining net income or net loss. Ramirez and Xue Income Statement For the Year Ended December 31, 2012 Operating expenses Total operating expenses