Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with remaining income for division of income and help woth the statement of partnership The ledger of Camila Ramirez and Ping Xue,

I need help with remaining income for division of income and help woth the statement of partnership

image text in transcribed

image text in transcribed

image text in transcribed

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: tal . shift Ramirez and Xue Trial Balance December 31, 20Y2 Debit Balances Credit Balances Cash 39,900 Accounts Receivable 38,000 Supplies 1,400 Land 95,000 Building 104,600 Accumulated Depreciation-Building 59,400 Office Equipment 43,700 Accumulated Depreciation - Office Equipment 18,400 Accounts Payable 28,300 Salaries Payable 3,000 Camila Ramirez, Capital 100,000 Camila Ramirez, Drawing 42,800 Ping Xue, Capital 57,000 Ping Xue, Drawing 61,800 Professional Fees 341,100 Salary Expense 138,700 Depreciation Expense-Building 13,800 Heating and Lighting Expense 6,800 Depreciation Expense-Office Equipment 4,300 Property Tax Expense 8,600 Supplies Expense 4,900 Miscellaneous Expense 2,900 607,200 607,200 The balance in Xue's capital account includes an additional investment of $10,000 made on May 5, 20Y2. The balance in Xue's capital account includes an additional investment of $10,000 made on May 5, 2012 Required: 1. Prepare an income statement for 20Y2, indicating the division of net income. The partnership agreement provides for salary allowances of $37,000 to Ramirez and $45,000 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, 20Y2 $ 341,100 Operating expenses: salxo Do Eve Bund Hoe/ lCP Defa Officiap Doo tax ev 341100 180.000 $ 1900 1100 LCD 4200 84 DD OD 200 180 ODD $ hel, 100 Mis are Total operating expenses 10% All X! 45000 Ramirez and Xue h: 3n00D leap look Op 57000 Division of Income hv For the Year Ended December 31, 20Y2 10000 7000 Camila Ramirez Ping Xue Total Division of net income: $ 450LO $ 22.000 $ Salary allowance Interest allowance Remaining income 37000 10 000 Uno) DOODO MID%570001103) 15700 (161100-82000-15700) 63400 Net income $ $ $ 2. Prepare a statement of partnership equity for 20Y2. If any amounts are zero, enter in "O". Ramirez and Xue Statement of Partnership Equity For the Year Ended December 31, 20Y2 Balances, January 1, 20Y2 Capital additions Camila Ramirez Ping Xue Total 100000 $ 47000 $ $147000 10000 10000 5100 42800 61sou 104600 $ $ $ Net income for the year Partner withdrawals Balances, December 31, 20Y2 3. Prepare a balance sheet as of the end of 2072. Ramirez and Xue Balance Sheet December 31, 2012 Assets Current assets: Cash $ 1900 3ooo 1Hoo Total current assets $ 19300 79300 + lusso Property, plant, and equipment: $ GSODO building $ 10400D 594100 $413710 45200 LIS Acr hi exfice 1% 40 2530 165, soo Total property, plant, and equip. Total assets $ (244800 Liabilities Current liabilities: Feet Pay Salenes por $28300 3100 Total liabilities 31300 Partners' Equity $ Camila Dina Kue Total partners' equity Total liabilities and partners' equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Using QuickBooks Online For Accounting 2021

Authors: Glenn Owen

4th Edition

0357442164, 9780357442166

More Books

Students also viewed these Accounting questions

Question

Why is a standard like DCE important?

Answered: 1 week ago

Question

16.3 Describe the purpose of Canadian labour laws.

Answered: 1 week ago

Question

16.6 Outline the three waysto obtain union recognition.

Answered: 1 week ago

Question

16.5 Describe the five steps in a union organizing campaign.

Answered: 1 week ago