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 XueTrial BalanceDecember 31, 20Y2Debit BalancesCredit BalancesCash46,200Accounts Receivable44,000Supplies1,700Land110,000Building121,200Accumulated DepreciationBuilding68,800Office Equipment50,600Accumulated DepreciationOffice Equipment21,300Accounts Payable32,800Salaries Payable3,500Camila Ramirez, Capital110,000Camila Ramirez, Drawing49,500Ping Xue, Capital66,000Ping Xue, Drawing71,500Professional Fees400,700Salary Expense160,600Depreciation ExpenseBuilding15,900Heating and Lighting Expense7,900Depreciation ExpenseOffice Equipment5,000Property Tax Expense9,900Supplies Expense5,700Miscellaneous Expense3,400703,100703,100

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 $44,000 to Ramirez and $54,000 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.

2. Prepare a statement of partnership equity for 20Y2. If any amounts are zero, enter in "0". 3. Prepare a balance sheet as of the end of 20Y2. 3. Prepare a balance sheet as of the end of 20Y2. Total property, plant, and equip. Total assets Liabilities Current liabilities: Total liabilities