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	37,000
Accounts Receivable	35,200
Supplies	1,300
Land	88,000
Building	96,000
Accumulated DepreciationBuilding			55,000
Office Equipment	40,500
Accumulated DepreciationOffice Equipment			17,100
Accounts Payable			26,200
Salaries Payable			2,800
Camila Ramirez, Capital			90,000
Camila Ramirez, Drawing	39,600
Ping Xue, Capital			52,800
Ping Xue, Drawing	57,200
Professional Fees			317,700
Salary Expense	128,500
Depreciation ExpenseBuilding	12,800
Heating and Lighting Expense	6,300
Depreciation ExpenseOffice Equipment	4,000
Property Tax Expense	7,900
Supplies Expense	4,600
Miscellaneous Expense	2,700
	561,600		561,600

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 $35,000 to Ramirez and $42,000 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 Operating expenses: Total operating expenses Ramirez and Xue Division of Income For the Year Ended December 31, 20Y2 \begin{tabular}{|l|c|} & Camila Ramirez \\ Division of net income: \\ Salary allowance \\ Interest allowance \\ Remaining income \end{tabular}