Exercise 3 - 10 Financial Statements Preparation The following adjusted balances were taken from the books of RGem Trading as of December 31, 2020: Accounts Payable 93,033 Accounts Receivable 143,000 Accumulated Depreciation- Delivery Equipment 140,000 Allowance for Doubtful Accounts 5,000 Cash 150,000 Delivery Equipment 350,000 Freight in 18,000 Gem, Capital 80,000 Romy, Capital 70,000 Gem, Drawing 10,000 Romy, Drawing 5,000 General and administrative expense 112,700 Financial Assets at Fair Value through Profit or Loss 26,000 Merchandise Inventory, January 1 100,000 Notes Payable (due 2022) 413,100 Notes Receivable 36,700 Prepaid expenses 7,633 Purchase Discounts 3,000 Purchase Returns and Allowances 5,000 Purchases 520,000 Sales 758,000 Sales Discounts 11,000 Sales Returns & Allowances 15,000 Selling expense 103,100 SSS & Philhealth Contributions Payable 2,000 Unearned Commission Income 39,000 Additional information: Merchandise Inventory as of December 31, 2020 amounted to P145,000. Required: 1. Prepare the income statement, statement of changes in partners' equity and the statement of financial position of RGem Trading. 2. The articles of co-partnership provide that net income shall be divided as follows: (a) 5% interest on beginning capital of each partner and (b) the balance to be divided equally