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Question: financial statements for partnership the ledger of camila ramirez and...

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Financial Statements for Partnership

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 42,000
Accounts Receivable 40,000
Supplies 1,500
Land 100,000
Building 109,000
Accumulated Depreciation—Building 62,500
Office Equipment 46,000
Accumulated Depreciation—Office Equipment 19,400
Accounts Payable 29,800
Salaries Payable 3,200
Camila Ramirez, Capital 100,000
Camila Ramirez, Drawing 45,000
Ping Xue, Capital 60,000
Ping Xue, Drawing 65,000
Professional Fees 363,100
Salary Expense 146,000
Depreciation Expense—Building 14,500
Property Tax Expense 9,000
Heating and Lighting Expense 7,200
Supplies Expense 5,200
Depreciation Expense—Office Equipment 4,500
Miscellaneous Expense 3,100
638,000 638,000

The balance in Xue' capital account includes an additional investment of $10,000 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 $40,000 to Ramirez and $49,000 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:
  Total operating expenses
$


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 $
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