Financial Statements for Partnerships 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, 2012 Ramirez and Xue Trial Balance December 31, 2012 Credit Debit Balances Balances Cash 70,300 Accounts Receivable 33,600 Supplies 5,800 Land 128,000 Building 175,000 Accumulated Depreciation-Building 80,000 Office Equipment 42,000 Accumulated Depreciation Omce Equipment 25,300 Accounts Payable 12,400 Salaries Payable 10,000 Camila Ramirez, Capital 125.000 Camila Ramirez, Drawing 35,000 Ping Xue, Capital 155,000 Ping Xue, Drawing 50,000 Professional Fees 555,300 Salary Expense 384,900 12.900 Depreciation Expense-Building Heating and Lighting Expense Depreciation Expense-Orice Equipment 10,500 6,300 3,200 Property Tax Expense Supplies Expense 3,000 Miscellaneous Expense 2,500 963,000 963,000 The balance in Xue's capital account includes an additional Investment of $20,000 made on May 5, 2012 Required: 1. Prepare an income statement for 2012, indicating the division of net income. The partnership agreement provides for salary allowances of 350,000 to Ramirez a $65,000 to Xue, allowances of 12% on each partner's capital balance at the beginning of the fiscal year, and equal division of the remaining net income or net loss 1. Prepare an income statement for 2012, indicating the division of net income. The partnership agreement provides for salary allowances of $50,000 to Ramirez and $65,000 to Xue, allowances of 12% on each partner's capital balance at the beginning of the fiscal year, and equal division of the remaining net income or net loss Bamendue Income Statement For the Year Ended 1, 2012 Professional Fees 555,300 Operating expenses: Salary Expense 384,900 Depreciation Expense-Bu ding 10,500 12,900 6,300 Heating and Lighting Expense Depreciation Expense-Orice Equipment Property Tax Expense Supplies Expense 3,200 3,000 Miscellaneous Expense 2,500 Total operating expenses 423,300 Net Income 132,000 Ramirez and Xue Division of Income For the Year Ended December 31, 2012 Camila Ramirez Ping Xue Total Division of net income: Salary allowance Interest allowance Remaining income (loss) Net income 2. Prepare a statement of partnership equity for 20Y2. If any amounts are zero, enter in "0". Ramirez and Xue Statement of Partnership Equity For the Year Ended December 31, 2012 Camila Ramirez Ping Xue Total Balances, January 1, 20Y2 Capital additions Net income for the year Partner withdrawals Balances, December 31, 20Y2 3. Prepare a balance sheet as of the end of 2012. Ramirez and Xue Balance Sheet December 31, 20Y2 Assets Current assets: Total current assets Property, plant, and equipment: Total property, plant, and equip. Total assets Total assets Liabilities Current liabilities: Total liabilities Partners Equity Total partners' equity Total liabilities and partners' equity