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 $51,700$

Accounts Receivable $49,200$

Supplies $1,800$

Land $123,000$

Building $134,700$

Accumulated Depreciation$$Building $76,900$

Office Equipment $56,600$

Accumulated Depreciation$$Office Equipment $23,900$

Accounts Payable $36,700$

Salaries Payable $3,900$

Camila Ramirez, Capital $120,000$

Camila Ramirez, Drawing $55,400$

Ping Xue, Capital $73,800$

Ping Xue, Drawing $80,000$

Professional Fees $450,300$

Salary Expense $179,600$

Depreciation Expense$$Building $17,800$

Heating and Lighting Expense $8,900$

Depreciation Expense$$Office Equipment $5,500$

Property Tax Expense $11,100$

Supplies Expense $6,400$

Miscellaneous Expense $3,800$

Totals $785,500785,500$

The balance in Xue's capital account includes an additional investment of $$13,000$ 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 $$50,000$ to Ramirez and $$61,000$ 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 $19$