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, 20Y2:

Ramirez and Xue
Trial Balance
December 31, 20Y2
	Debit Balances		Credit Balances
Cash	42,000
Accounts Receivable	40,000
Supplies	1,500
Land	100,000
Building	109,400
Accumulated DepreciationBuilding			62,500
Office Equipment	46,000
Accumulated DepreciationOffice Equipment			19,400
Accounts Payable			29,800
Salaries Payable			3,200
Camila Ramirez, Capital			100,000
Camila Ramirez, Drawing	45,000
Ping Xue, Capital			60,000
Ping Xue, Drawing	65,000
Professional Fees			363,500
Salary Expense	146,000
Depreciation ExpenseBuilding	14,500
Property Tax Expense	9,000
Heating and Lighting Expense	7,200
Supplies Expense	5,200
Depreciation ExpenseOffice Equipment	4,500
Miscellaneous Expense	3,100
	638,400		638,400

The balance in Xue' capital account includes an additional investment of $10,000 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 $40,000 to Ramirez and $49,000 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 Operating expenses: $ Total operating expenses $ Ramirez and Xue Division of Income For the Year Ended December 31, 2012 Camila Ramirez Ping Xue Total Division of net income: Salary allowance S $ 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, 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 20Y2. 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 Liabilities Total assets Liabilities Current liabilities: A Total liabilities Partners' Equity Total partners' equity Total liabilities and partners' equity 09 Ramirez and Xue Income Statement For the Year Ended December 31, 20Y2 Operating expenses: $ Total operating expenses $ Ramirez and Xue Division of Income For the Year Ended December 31, 2012 Camila Ramirez Ping Xue Total Division of net income: Salary allowance S $ 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, 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 20Y2. 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 Liabilities Total assets Liabilities Current liabilities: A Total liabilities Partners' Equity Total partners' equity Total liabilities and partners' equity 09