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:

1. Ramirez and Xue
   Trial Balance
   December 31, 20Y2
   	Debit Balances		Credit Balances
   Cash	38,200
   Accounts Receivable	36,400
   Supplies	1,400
   Land	91,000
   Building	100,000
   Accumulated DepreciationBuilding			56,900
   Office Equipment	41,900
   Accumulated DepreciationOffice Equipment			17,700
   Accounts Payable			27,100
   Salaries Payable			2,900
   Camila Ramirez, Capital			90,000
   Camila Ramirez, Drawing	41,000
   Ping Xue, Capital			54,600
   Ping Xue, Drawing	59,200
   Professional Fees			332,400
   Salary Expense	132,900
   Depreciation ExpenseBuilding	13,200
   Property Tax Expense	8,200
   Heating and Lighting Expense	6,600
   Supplies Expense	4,700
   Depreciation ExpenseOffice Equipment	4,100
   Miscellaneous Expense	2,800
   	581,600		581,600

   The balance in Xue' capital account includes an additional investment of $9,000 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 $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.

   Ramirez and Xue Income Statement For the Year Ended December 31, 20Y2
   Operating expenses:
   Total operating expenses
   		$

   Ramirez and Xue Division of Income For the Year Ended December 31, 20Y2
   	Camila Ramirez	Ping Xue	Total
   Division of net income:
   Salary allowance
   Interest allowance
   Remaining income
   Net income

   2. Prepare a statement of partnership equity for 20Y2. If any amounts are zero, enter in "0".

   Ramirez and Xue Statement of Partnership Equity For the Year Ended December 31, 20Y2
   	Camila Ramirez	Ping Xue	Total
   Balances, January 1, 20Y2
   Capital additions
   Net income for the year
   Partner withdrawals
   Balances, December 31, 20Y2	$	$	$

   3. Prepare a balance sheet as of the end of 20Y2.

   Ramirez and Xue Balance Sheet December 31, 20Y2
   Assets
   Current assets:
   Total current assets			$
   Property, plant, and equipment:
   Total property, plant, and equip.
   Total assets			$
   Liabilities
   Current liabilities:
   Total liabilities
   Partners' Equity
   Total partners' equity
   Total liabilities and partners' equity			$