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, 20Y2:

Ramirez and Xue
Trial Balance
December 31, 20Y2
	Debit Balances		Credit Balances
Cash	47,500
Accounts Receivable	45,200
Supplies	1,700
Land	113,000
Building	123,800
Accumulated DepreciationBuilding			70,600
Office Equipment	52,000
Accumulated DepreciationOffice Equipment			21,900
Accounts Payable			33,700
Salaries Payable			3,600
Camila Ramirez, Capital			110,000
Camila Ramirez, Drawing	50,900
Ping Xue, Capital			67,800
Ping Xue, Drawing	73,500
Professional Fees			414,200
Salary Expense	165,000
Depreciation ExpenseBuilding	16,400
Property Tax Expense	10,200
Heating and Lighting Expense	8,100
Supplies Expense	5,900
Depreciation ExpenseOffice Equipment	5,100
Miscellaneous Expense	3,500
	721,800		721,800

The balance in Xue' capital account includes an additional investment of $12,000 made on May 5, 20Y2.

Required:

1. Prepare an income statement for 20Y2, indicating the division of net income. The partnership agreement provides for salary allowances of $46,000 to Ramirez and $56,000 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.

\begin{tabular}{l} Ramirez and Xue \\ Division of Income \\ For the Year Ended December 31, 20Y2 \\ \hline \\ Division of net income: \\ Salary allowance \\ Interest allowance \\ Remaining income \\ Net income \end{tabular} 2. Prepare a statement of partnership equity for 20Y2. If any amounts are zero, enter in " 0 ". Liabilities Current liabilities: Total liabilities 1. Prepare an income statement for 20V, indicating the division of net income. The partnership agreement provides for salary allowancas of s45, oco to Rartirez and $56,000 to Xue, allowances of 104 on each partner's capital bolance at the begirning of the fiscal year, and equal divislon of the rumaininig net neartse or net loak 3. Prepare a balance sheet as of the end of 20Y2