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 $31,20$Y$2$:

Ramirez and Xue

Trial Balance

December $31,20$Y$2$

Line Item Description Debit

Balances Credit

Balances

Cash $50,800$

Accounts Receivable $48,400$

Supplies $1,800$

Land $121,000$

Building $129,700$

Accumulated Depreciation$$Building $75,600$

Office Equipment $55,700$

Accumulated Depreciation$$Office Equipment $23,500$

Accounts Payable $36,100$

Salaries Payable $3,900$

Camila Ramirez, Capital $120,000$

Camila Ramirez, Drawing $54,500$

Ping Xue, Capital $72,600$

Ping Xue, Drawing $78,700$

Professional Fees $438,200$

Salary Expense $176,700$

Depreciation Expense$$Building $17,500$

Heating and Lighting Expense $8,700$

Depreciation Expense$$Office Equipment $5,400$

Property Tax Expense $10,900$

Supplies Expense $6,300$

Miscellaneous Expense $3,800$

Totals $769,900769,900$

The balance in Xue's capital account includes an additional investment of $$12,000$ made on May $5,20$Y$2.$

Required:

$1.$ Prepare an income statement for $20$Y$2,$ indicating the division of net income. The partnership agreement provides for salary allowances of $$48,000$ to Ramirez and $$58,000$ 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 $31,20$Y$2$

Line Item Description Amount Amount

$fill in the blank $2$

Operating expenses:

$fill in the blank $4$

fill in the blank $6$

fill in the blank $8$

fill in the blank $10$

fill in the blank $12$

fill in the blank $14$

fill in the blank $16$

Total operating expenses fill in the blank $17$

$fill in the blank $19$

Ramirez and Xue

Division of Income

For the Year Ended December $31,20$Y$2$

Line Item Description Camila

Ramirez Ping

Xue Total

Division of net income:

Salary allowance $fill in the blank $20$

$fill in the blank $21$

$fill in the blank $22$

Interest allowance fill in the blank $23$

fill in the blank $24$

fill in the blank $25$

Remaining income $($loss$)$ fill in the blank $26$

fill in the blank $27$

fill in the blank $28$

Net income $fill in the blank $29$

$fill in the blank $30$

$fill in the blank $31$

$2.$ Prepare a statement of partnership equity for $20$Y$2.$ If any amounts are zero, enter in $"0".$

Ramirez and Xue

Statement of Partnership Equity

For the Year Ended December $31,20$Y$2$

Line Item Description Camila

Ramirez Ping

Xue Total

Balances, January $1,20$Y$2$ $fill in the blank $32$

$fill in the blank $33$

$fill in the blank $34$

Additional investment by partner fill in the blank $35$

fill in the blank $36$

fill in the blank $37$

Net income for the year fill in the blank $38$

fill in the blank $39$

fill in the blank $40$

Partner withdrawals fill in the blank $41$

fill in the blank $42$

fill in the blank $43$

Balances, December $31,20$Y$2$ $fill in the blank $44$

$fill in the blank $45$

$fill in the blank $46$

$3.$ Prepare a balance sheet as of the end of $20$Y$2.$

Ramirez and Xue

Balance Sheet

December $31,20$Y$2$

Line Item Description Amount Amount Amount

Assets

Current assets:

$fill in the blank $48$

fill in the blank $50$

fill in the blank $52$

Total current assets $fill in the blank $53$

Property, plant, and equipment:

$fill in the blank $55$

$fill in the blank $57$

fill in the blank $59$

Subtotal fill in the blank $60$

$fill in the blank $62$

fill in the blank $64$

Subtotal fill in the blank $65$

Total property, plant, and equip. fill in the blank $66$

Total assets $fill in the blank $67$

Liabilities

Current liabilities:

$fill in the blank $69$

fill in the blank $71$

Total liabilities $fill in the blank $72$

Partners' Equity

$fill in the blank $74$

fill in the blank $76$

Total partners' equity fill in the blank $77$

Total liabilities and partners' equity $fill in the blank $78$