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	51,700
Accounts Receivable	49,200
Supplies	1,800
Land	123,000
Building	134,000
Accumulated DepreciationBuilding			76,900
Office Equipment	56,600
Accumulated DepreciationOffice 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			449,600
Salary Expense	179,600
Depreciation ExpenseBuilding	17,800
Property Tax Expense	11,100
Heating and Lighting Expense	8,900
Supplies Expense	6,400
Depreciation ExpenseOffice Equipment	5,500
Miscellaneous Expense	3,800
	784,800		784,800

The balance in Xue' capital account includes an additional investment of $13,000 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 $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, 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:
Total current assets			$
Property, plant, and equipment:
Total property, plant, and equip.
Total assets			$
Liabilities
Current liabilities:
Total liabilities
Partners' Equity
Total partners' equity
Total liabilities and partners' equity			$