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 48,700 Accounts Receivable 46,400 Supplies 1,700 Land 116,000 125,600 Building Accumulated Depreciation-Building 72,500 53,400 Office Equipment Accumulated Depreciation - Office Equipment 22,500 Accounts Payable 34,600 Salaries Payable 3,700 Camila Ramirez, Capital 120,000 Camila Ramirez, Drawing 52,200 69,600 Ping Xue, Capital Ping Xue, Drawing Professional Fees 75,400 416,300 169,400 16,800 10,400 Salary Expense Depreciation Expense-Building Property Tax Expense Heating and Lighting Expense Supplies Expense Depreciation Expense-Office Equipment Miscellaneous Expense 8,400 6,000 5,200 3,600 739,200 739,200 The balance in Xue' capital account includes an additional investment of $12,000 made on May 5, 2012. Required: 1. Prepare an income statement for 20Y2, indicating the division of net income. The partnership agreement provides for salary allowances of $45,000 to Ramirez and $55,000 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, 2012 $ Operating expenses: $ Total operating expenses $ 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 $ 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, 2012 Camila Rai ez Ping Xue Total Balances, January 1, 20Y2 $ $ $ Capital additions Net income for the year Partner withdrawals Balances, December 31, 20Y2 89 $ 3. Prepare a balance sheet as of the end of 20Y2. Ramirez and Xue Balance Sheet December 31, 2012 Assets Current assets: $ 09 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