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	39,500
Accounts Receivable	37,600
Supplies	1,400
Land	94,000
Building	103,100
Accumulated DepreciationBuilding			58,800
Office Equipment	43,200
Accumulated DepreciationOffice Equipment			18,200
Accounts Payable			28,000
Salaries Payable			3,000
Camila Ramirez, Capital			90,000
Camila Ramirez, Drawing	42,300
Ping Xue, Capital			56,400
Ping Xue, Drawing	61,100
Professional Fees			345,900
Salary Expense	137,200
Depreciation ExpenseBuilding	13,600
Property Tax Expense	8,500
Heating and Lighting Expense	6,800
Supplies Expense	4,900
Depreciation ExpenseOffice Equipment	4,200
Miscellaneous Expense	2,900
	600,300		600,300

The balance in Xue' capital account includes an additional investment of $10,000 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 $39,000 to Ramirez and $47,000 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.

Ramirez and Xue Income Statement For the Year Ended December 31, 20Y2 Professional Fees 345,900 Operating expenses: Salary Expense A 137,200 Depreciation Expense-Building 13,600 Property Tax Expense 8,500 Heating and Lighting Expense 6,800 Supplies Expense 4,900 Depreciation Expense-office Equipment 4,200 Miscellaneous Expense 2,900 Total operating expenses 178,100 Net Income $ 167,800 Ramirez and Xue Division of Income For the Year Ended December 31, 20Y2 Camila Ramirez Ping Xue Total Division of net income: Salary allowance $ 39,000 47,000 S 86,000 Interest allowance 9,000 Remaining income Net income 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 Balance Sheet December 31, 20Y2 Assets Current assets: Cash S 39,500 Accounts Receivable 37,600 Supplies 1,400 $ Total current assets 78,500 Property, plant, and equipment: Land S 94,000 Building $ 103,100 Less Accumulated Depreciation 58,800 44,300 Office Equipment S 43,200 Less Accumulated Depreciation 18,200 25,000 Total property, plant, and equip. 163,300 $ Total assets 241,800 Liabilities Current liabilities: Accounts Payable S 28,000 Salaries Payable 3,000 Total liabilities 31,000 Partners' Equity Camila Ramirez, Capital $ Ping Xue, Capital Total partners' equity Total liabilities and partners' equity $