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, 2016:

Ramirez and Xue

ADJUSTED TRIAL BALANCE

December 31, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	70,300.00
2	Accounts Receivable	33,600.00
3	Supplies	5,800.00
4	Land	128,000.00
5	Building	175,000.00
6	Accumulated Depreciation-Building		80,000.00
7	Office Equipment	42,000.00
8	Accumulated Depreciation-Office Equipment		25,300.00
9	Accounts Payable		12,400.00
10	Salaries Payable		10,000.00
11	Camila Ramirez, Capital		125,000.00
12	Camila Ramirez, Drawing	35,000.00
13	Ping Xue, Capital		155,000.00
14	Ping Xue, Drawing	50,000.00
15	Income Summary
16	Professional Fees		555,300.00
17	Salary Expense	384,900.00
18	Depreciation Expense-Building	12,900.00
19	Property Tax Expense	3,200.00
20	Heating and Lighting Expense	10,500.00
21	Supplies Expense	3,000.00
22	Depreciation Expense-Office Equipment	6,300.00
23	Miscellaneous Expense	2,500.00
24	Totals	963,000.00	963,000.00

The balance in Xues capital account includes an additional investment of $20,000 made on May 5, 2016.

Required:

1.

Prepare an income statement for the current fiscal year. Create a separate statement indicating the division of net income to the partners. The partnership agreement provides for salary allowances of $50,000 to Ramirez and $65,000 to Xue, allowances of 12% on each partners capital balance at the beginning of the fiscal year, and equal division of the remaining net income or net loss.*

2.

Prepare a statement of partnership equity for 2016.*

3.

Prepare a balance sheet as of the end of 2016.*

* Refer to the information given and the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If a net loss is incurred or there is a decrease in partners equity, enter that amount as a negative number using a minus sign.