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 XueTrial BalanceDecember 31, 20Y2 Debit Balances Credit BalancesCash51,200 Accounts Receivable48,800 Supplies1,800 Land122,000 Building134,100 Accumulated DepreciationBuilding 76,300Office Equipment56,100 Accumulated DepreciationOffice Equipment 23,700Accounts Payable 36,400Salaries Payable 3,900Camila Ramirez, Capital 120,000Camila Ramirez, Drawing54,900 Ping Xue, Capital 73,200Ping Xue, Drawing79,300 Professional Fees 445,900Salary Expense178,100 Depreciation ExpenseBuilding17,700 Heating and Lighting Expense8,800 Depreciation ExpenseOffice Equipment5,500 Property Tax Expense11,000 Supplies Expense6,300 Miscellaneous Expense3,800 779,400 779,400

The balance in Xue's capital account includes an additional investment of $12,000 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 $49,000 to Ramirez and $60,000 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.

2. Prepare a statement of partnership equity for 20Y2. If any amounts are zero, enter in "0".

3. Prepare a balance sheet as of the end of 20Y2.