The ledger of Jin Ding and Paul Hoffman, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 2012:

The balance in Hoffman's capital account includes an additional investment of $20,000 made on April 5, 2012.

Instructions
1. Prepare an income statement for the current fiscal year, indicating the division of net income. The articles of partnership provide for salary allowances of $60,000 to Ding and $75,000 to Hoffman, 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 partners' equity for 2012.
3. Prepare a balance sheet as of the end of2012.

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Ding and Hoffman Trial Balance December 31, 2012 Debit Credit Balances 26,900 41,300 Balances Cash Accounts Receivable Supplies Land Building Accumulated Depreciation-Building Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable Salaries Payable Jin Ding, Capital Jin Ding, Drawing Paul Hoffman, Capital Paul Hoffman, Drawing Professional Fees Salary Expense Depreciation Expense-Building Heating and Lighting Expense Depreciation Expense Offce Equipment Property Tax Expense Supplies Expense Miscellaneous Expense 6,700 140,000 160,000 52,000 62,000 21,300 3,400 5,200 130,000 50,000 170,000 60,000 583,200 315,700 75,000 11,900 6,700 3,500 3,400 2,000 965,100 965,100