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

The balance in Xue's capital account includes an additional investment of $20,000 made on May 5, 20Y2.
Instructions
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 $65,000 to Xue, allowances of 12% 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.
3. Prepare a balance sheet as of the end of 20Y2.

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Debit Balances Credit Balances Cash 70,300 Accounts Receivable 33,600 Supplies 5,800 Land 128,000 Building Accumulated Depreciation-Building Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable Salaries Payable Camila Ramirez, Capital Camila Ramirez, Drawing Ping Xue, Capital Ping Xue, Drawing 175,000 80,000 42,000 25,300 12,400 10,000 125,000 35,000 155,000 50,000 Professional Fees 555,300 Salary Expense Depreciation Expense-Building Heating and Lighting Expense Depreciation Expense-Office Equipment 384,900 12,900 10,500 6,300 Property Tax Expense Supplies Expense Miscellaneous Expense 3,200 3,000 2,500 963,000 963,000