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 38,600 Accounts Receivable Supplies Land Building Accumulated Depreciation-Building Office Equipment 36,800 1,400. 92,000 100,200 57,500 42,300 Accumulated Depreciation-Office Equipment 17,800 Accounts Payable Salaries Payable Camila Ramirez, Capital Camila Ramirez, Drawing 27,400 2,900 90,000 41,400 Ping Xue, Capital Ping Xue, Drawing 55,200 59,800 Professional Fees 336,000 Salary Expense 134,300. Depreciation Expense-Building 13,300 Heating and Lighting Expense 6,600 Depreciation Expense-Office Equipment 4,100 Property Tax Expense 8,300 Supplies Expense 4,800 Miscellaneous Expense 2,900 586,800 586,800 The balance in Xue's capital account includes an additional investment of $9,000 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 $37,000 to Ramirez and $45,000 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. Required: 1. Prepare an income statement for 2012, indicating the division of net income. The partnership agreement provides for salary allowances of $37,000 to Ramirez and $45,000 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. Professional Fees Operating expenses: Ramirez and Xue Income Statement For the Year Ended December 31, 20Y2 336,000 Salary Expense 134,300 Depreciation Expense-Building 13,300 Heating and Lighting Expense 6,000 Depreciation Expense-Office Equipment 4,100 Property Tax Expense 8,300 Supplies Expense 4,800 Miscellaneous Expense Total operating expenses 2,900 173,700 Net Income 162,300 Ramirez and Xue Division of Income For the Year Ended December 31, 2012 Camila Ramirez Plog Xue Total Ramirez and Xue Division of Income For the Year Ended December 31, 2012 Camila Ramirez Ping Xue Total Division of net income: Salary allowance Interest allowance 37,000 9,000 45,000 82,000 462 9,462 Remaining income. Net income 2. Prepare a statement of partnership equity for 2012. If any amounts are zero, enter in "0" Ramirez and Xdp Statement of Partnership Equity Balances, January 1, 2012 Capital additions Net Income for the year Partner withdrawals Balances, December 31, 20Y2 For the nded Deteri Camila Ramirez Ping Xue Total 900d 3. Prepare a balance sheet as of the end of 2012. < Current assets: Cash Accounts Receivable Supplies Total current assets Property, plant, and equipment: Lahd Building Less Accumulated Depreciation Office Equipment Less Accumulated Depreciation Total property, plant, and equip. Total assets Current liabilities: Accounts Payable Salaries Payable Check My Work 2 more Check My Work uses remaining Ramirez and Xue Balance Sheet December 31, 20Y2 Assets Liabilities 27,400 2,900 property, plant, and equip. Total assets Current liabilities: Accounts Payable Salaries Payable Total Habilities Camila Ramirez, Capital Ping Xue, Capital Total partners equity Total liabilities and partners' equity Check My Work 2 more Check My Work uses remainin Liabilities Partners Equity 27,400 2,900 30,300