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	38,600
Accounts Receivable	36,800
Supplies	1,400
Land	92,000
Building	99,900
Accumulated DepreciationBuilding			57,500
Office Equipment	42,300
Accumulated DepreciationOffice Equipment			17,800
Accounts Payable			27,400
Salaries Payable			2,900
Camila Ramirez, Capital			90,000
Camila Ramirez, Drawing	41,400
Ping Xue, Capital			55,200
Ping Xue, Drawing	59,800
Professional Fees			335,700
Salary Expense	134,300
Depreciation ExpenseBuilding	13,300
Heating and Lighting Expense	6,600
Depreciation ExpenseOffice Equipment	4,100
Property Tax Expense	8,300
Supplies Expense	4,800
Miscellaneous Expense	2,900
	586,500		586,500

The balance in Xue's 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
Accounts PayableDepreciation expense - BuildingProfessional FeesSalary ExpenseSupplies Expense		$fill in the blank 2
Operating expenses:
Accumulated DepreciationProfessional FeesSalaries PayableSalary ExpenseSupplies	$fill in the blank 4
Accumulated DepreciationBuildingCashDepreciation Expense-BuildingProfessional Fees	fill in the blank 6
Accounts ReceivableCashHeating and Lighting ExpenseProfessional FeesSalaries Payable	fill in the blank 8
Accounts ReceivableAccumulated DepreciationCashDepreciation Expense-Office EquipmentOffice Equipment	fill in the blank 10
Accounts PayableBuildingCamila Ramirez, CapitalOffice EquipmentProperty Tax Expense	fill in the blank 12
Accumulated DepreciationBuildingLandSuppliesSupplies Expense	fill in the blank 14
Accounts PayableCashMiscellaneous ExpenseProfessional FeesSupplies	fill in the blank 16
Total operating expenses		fill in the blank 17
Net IncomeNet Loss		$fill in the blank 19

Ramirez and Xue Division of Income For the Year Ended December 31, 20Y2
	Camila Ramirez	Ping Xue	Total
Division of net income:
Salary allowance	$fill in the blank 20	$fill in the blank 21	$fill in the blank 22
Interest allowance	fill in the blank 23	fill in the blank 24	fill in the blank 25
Remaining income	fill in the blank 26	fill in the blank 27	fill in the blank 28
Net income	$fill in the blank 29	$fill in the blank 30	$fill in the blank 31

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	$fill in the blank 32	$fill in the blank 33	$fill in the blank 34
Capital additions	fill in the blank 35	fill in the blank 36	fill in the blank 37
Net income for the year	fill in the blank 38	fill in the blank 39	fill in the blank 40
Partner withdrawals	fill in the blank 41	fill in the blank 42	fill in the blank 43
Balances, December 31, 20Y2	$fill in the blank 44	$fill in the blank 45	$fill in the blank 46

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

Ramirez and Xue Balance Sheet December 31, 20Y2
Assets
Current assets:
Accounts PayableCamila Ramirez, CapitalCashPing Xue, CapitalSalaries Payable		$fill in the blank 48
Accounts PayableAccounts ReceivableCamila Ramirez, CapitalPing Xue, CapitalSalaries Payable		fill in the blank 50
Accounts PayableHeating and lighting ExpenseSalaries PayableSuppliesSupplies Expense		fill in the blank 52
Total current assets			$fill in the blank 53
Property, plant, and equipment:
Accounts ReceivableCashLandProfessional FeesSalaries Expense		$fill in the blank 55
Accounts PayableBuildingCashPing Xue, CapitalSupplies Expense	$fill in the blank 57
Less Accounts ReceivableLess Accumulated DepreciationLess Camila Ramirez, DrawingLess CashLess Land	fill in the blank 59	fill in the blank 60
Accounts PayableMiscellaneous expenseOffice EquipmentPing Xue, CapitalProperty Tax Expense	$fill in the blank 62
Less Accounts PayableLess Accounts ReceivableLess Accumulated DepreciationLess CashLess Land	fill in the blank 64	fill in the blank 65
Total property, plant, and equip.			fill in the blank 66
Total assets			$fill in the blank 67
Liabilities
Current liabilities:
Accounts PayableAccounts ReceivableCamila Ramirez, CapitalCashOffice Equipment		$fill in the blank 69
Accounts ReceivableCamila Ramirez, CapitalCashOffice EquipmentSalaries Payable		fill in the blank 71
Total liabilities			fill in the blank 72
Partners' Equity
Accounts ReceivableBuildingCamila Ramirez, CapitalCashSalaries Payable		$fill in the blank 74
Accounts ReceivableCashOffice EquipmentPing Xue, CapitalSalaries Payable		fill in the blank 76
Total partners' equity			fill in the blank 77
Total liabilities and partners' equity			$fill in the blank 78