Week 7 Homework ? 1. PR. 12-03.ALGO Financial Statements for Partnership 2. PR. 12-05.ALGO 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, 2012 Debit Credit Balances Balances Cash 53,800 Accounts Receivable 51,200 Supplies 1,900 Land 128,000 Building 137,800 Accumulated Depreciation-Building 80,000 Office Equipment 58,900 Accumulated Depreciation-Office Equipment 24,800 Accounts Payable 38,100 Week 7 Homework Accounts Payable 38,100 ? 1. PR. 12-03.ALGO Salaries Payable 4,100 2. PR. 12-05.ALGO Camila Ramirez, Capital 130,000 Camila Ramirez, Drawing 57,600 Ping Xue, Capital 76,800 Ping Xue, Drawing 83,200 Professional Fees 461,300 Salary Expense 186,900 Depreciation Expense-Building 18,600 Property Tax Expense 11,500 Heating and Lighting Expense 9,200 Supplies Expense 6,700 Depreciation Expense-Office Equipment 5,800 Miscellaneous Expense 4,000 815,100 815,100 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 Week 7 Homework ? 1. PR. 12-03.ALGO 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 2. PR. 12-05.ALGO Ramirez and Xue Income Statement For the Year Ended December 31, 20Y2 $ Operating expenses: $ Total operating expenses Week 7 Homework ? 1. PR. 12-03.ALGO 2. PR. 12-05.ALGO Ramirez and Xue Division of Income For the Year Ended December 31, 20Y2 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 2012. 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 $ S $ Capital additions Week 7 Homework Capital additions ? 1. PR. 12-03.ALGO Net income for the year 2. PR. 12-05.ALGO E 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: Week 7 Homework ? 1. PR. 12-03.ALGO 2. PR. 12-05.ALGO Total property, plant, and equip. Total assets Liabilities Current liabilities: Total liabilities Partners' Equity s Total partners' equity Total liabilities and partners' equity
