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	44,900
Accounts Receivable	42,800
Supplies	1,600
Land	107,000
Building	114,900
Accumulated DepreciationBuilding			66,900
Office Equipment	49,200
Accumulated DepreciationOffice Equipment			20,800
Accounts Payable			31,900
Salaries Payable			3,400
Camila Ramirez, Capital			110,000
Camila Ramirez, Drawing	48,200
Ping Xue, Capital			64,200
Ping Xue, Drawing	69,600
Professional Fees			383,700
Salary Expense	156,200
Depreciation ExpenseBuilding	15,500
Heating and Lighting Expense	7,700
Depreciation ExpenseOffice Equipment	4,800
Property Tax Expense	9,600
Supplies Expense	5,600
Miscellaneous Expense	3,300
Balance	680,900		680,900

The balance in Xue's capital account includes an additional investment of $11,000 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 $42,000 to Ramirez and $51,000 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
		$fill in the blank 2
Operating expenses:
	$fill in the blank 4
	fill in the blank 6
	fill in the blank 8
	fill in the blank 10
	fill in the blank 12
	fill in the blank 14
	fill in the blank 16
Total operating expenses		fill in the blank 17
		$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:
		$fill in the blank 48
		fill in the blank 50
		fill in the blank 52
Total current assets			$fill in the blank 53
Property, plant, and equipment:
		$fill in the blank 55
	$fill in the blank 57
	fill in the blank 59	fill in the blank 60
	$fill in the blank 62
	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:
		$fill in the blank 69
		fill in the blank 71
Total liabilities			fill in the blank 72
Partners' Equity
		$fill in the blank 74
		fill in the blank 76
Total partners' equity			fill in the blank 77
Total liabilities and partners' equity			$fill in the blank 78