< Financial Statements for Partnership 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 December 31, 2012 Debit Credit Balances Balances Cash 48,700 Accounts Receivable 46,400 Supplies 1,700 Land 116,000 Building 125,600 Accumulated Depreciation-Building 72,500 Office Equipment 53,400 Accumulated Depreciation-Office Equipment 22,500 Accounts Payable 34,600 Salaries Payable 3,700 Camila Ramirez, Capital 120,000 Camila Ramirez, Capital 120,000 Camila Ramirez, Drawing 52,200 Ping Xue, Capital 69,600 Ping Xue, Drawing 75,400 Professional Fees Salary Expense Depreciation Expense-Building Property Tax Expense 416,300. 169,400 16,800 10,400 Heating and Lighting Expense Supplies Expense Depreciation Expense-Office Equipment 1. Prepare an income statement for 2012, indicating the division of net income. The partnership agreement provides for salary allowances of $45,000 to Ramirez and $55,000 to Xue, allowances of 10% on each partner's capital balance at the beginning of the fiscal year, and equal division of the remaining net income or net loss. Operating expenses: Ramirez and Xue Income Statement For the Year Ended December 31, 2012 Total operating expenses Ramirez and Xue Division of Income For the Year Ended December 31, 2012 Division of net income: Salary allowance Camila Ramirez Ping Xue Total Interest allowance Remaining income Net income 2. Prepare a statement of partnership equity for 2012. If any amounts are zero, enter in "0". Balances, January 1, 2012 Ramirez and Xue Statement of Partnership Equity For the Year Ended December 31, 2012 Camila Ramirez Capital additions Net income for the year Check My Work 3 more Check My Worx uses remaining Ping Xue Total Previous Cammez britte X00 me Statement of Partnership Equity For the Year Ended December 31, 20Y2 Camila Ramirez Ping Xue Balances, January 1, 2012 Capital additions Net income for the year Partner withdrawals Balances, December 31, 20Y2 < 3. Prepare a balance sheet as of the end of 20Y2. Current assets: Ramirez and Xue Balance Sheet December 31, 20Y2 Assets S Total Current assets: Total current assets Property, plant, and equipment: Total property, plant, and equip. Total assets Ramirez and Xue Balance Sheet December 31, 2012 Assets eBook Total property, plant, and equip. Total assets Current liabilities: Liabilities < Total liabilities Partners Equity Total partners' equity Total liabilities and partners' equity