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	51,200
Accounts Receivable	48,800
Supplies	1,800
Land	122,000
Building	132,200
Accumulated DepreciationBuilding			76,300
Office Equipment	56,100
Accumulated DepreciationOffice Equipment			23,700
Accounts Payable			36,400
Salaries Payable			3,900
Camila Ramirez, Capital			120,000
Camila Ramirez, Drawing	54,900
Ping Xue, Capital			73,200
Ping Xue, Drawing	79,300
Professional Fees			444,000
Salary Expense	178,100
Depreciation ExpenseBuilding	17,700
Heating and Lighting Expense	8,800
Depreciation ExpenseOffice Equipment	5,500
Property Tax Expense	11,000
Supplies Expense	6,300
Miscellaneous Expense	3,800
	777,500		777,500

The balance in Xue's capital account includes an additional investment of $12,000 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 $49,000 to Ramirez and $60,000 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.