Ramirez and Xue
Trial Balance
December 31, 20Y2
	Debit Balances		Credit Balances
Cash	46,200
Accounts Receivable	44,000
Supplies	1,700
Land	110,000
Building	120,100
Accumulated DepreciationBuilding			68,800
Office Equipment	50,600
Accumulated DepreciationOffice Equipment			21,300
Accounts Payable			32,800
Salaries Payable			3,500
Camila Ramirez, Capital			110,000
Camila Ramirez, Drawing	49,500
Ping Xue, Capital			66,000
Ping Xue, Drawing	71,500
Professional Fees			399,600
Salary Expense	160,600
Depreciation ExpenseBuilding	15,900
Property Tax Expense	9,900
Heating and Lighting Expense	7,900
Supplies Expense	5,700
Depreciation ExpenseOffice Equipment	5,000
Miscellaneous Expense	3,400
	702,000		702,000

The balance in Xue' capital account includes an additional investment of $11,000 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 $44,000 to Ramirez and $54,000 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
Professional Fees
Operating expenses:
Salary Expense
Depreciation Expense-Building
Property Tax Expense
Heating and Lighting Expense
Supplies Expense
Depreciation Expense-office Equipment
Miscellaneous Expense
Total operating expenses
Net Income		$

Ramirez and Xue Division of Income For the Year Ended December 31, 20Y2
	Camila Ramirez	Ping Xue	Total
Division of net income:
Salary allowance
Interest allowance
Remaining income
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, 20Y2
	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 20Y2.

Ramirez and Xue Balance Sheet December 31, 20Y2
Assets
Current assets:
Cash
Accounts Receivable
Supplies
Total current assets			$
Property, plant, and equipment:
Land
Building
Less Accumulated Depreciation
Office Equipment
Less Accumulated Depreciation
Total property, plant, and equip.
Total assets			$
Liabilities
Current liabilities:
Accounts Payable
Salaries Payable
Total liabilities
Partners' Equity
Camila Ramirez, Capital
Ping Xue, Capital
Total partners' equity
Total liabilities and partners' equity			$