Answer Happy

The ledger of Camila Ramirez and Ping Xue, attorneys-at-law, contains the following accounts and balance Ramirez and Xue Trial Balance December 31, 20Y2 Cash Accounts Receivable Supplies Land 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 Debit Balances 42,000 40,000 1,500 100,000 107,500 46,000 45,000 65,000 Credit Balances 62,500 19,400 29,800 3,200 100,000 60,000

Professional Fees Salary Expense Depreciation Expense-Building Heating and Lighting Expense Depreciation Expense-Office Equipment Property Tax Expense Supplies Expense Miscellaneous Expense Required: 636,500 The balance in Xue's capital account includes an additional investment of $10,000 made on May 5, 20Y2. Professional Fees Operating expenses: Salary Expense 146,000 14,500 7,200 4,500 Depreciation Expense-Building 9,000 5,200 3,100 636,500 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 $48,000 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 361,600 146,000 62,500 X 361,600

Dalance at the Total operating expenses Net Income or the Professional Fees Operating expenses: Salary Expense Depreciation Expense-Building Heating and Lighting Expense Depreciation Expense-Office Equipment Property Tax Expense Supplies Expense Miscellaneous Expense year, and equal Ramirez and Xue Income Statement For the Year Ended December 31, 20Y2 146,000 62,500 X 7,200 4,500 9,000 5,200 3,100 or net loss. 361,600 237,500 X 124,100 X

Division of net income: Salary allowance Interest allowance Remaining income Net income Ramirez and Xue Division of Income For the Year Ended December 31, 20Y2 Camila Ramirez Balances, January 1, 20Y2 Capital additions Net income for the year Partner withdrawals Balances, December 31, 20Y2 40,000 10,000 Ping Xue 48,000 6,000 X Ramirez and Xue Statement of Partnership Equity For the Year Ended December 31, 20Y2 Ping Xue Camila Ramirez 100,000 2. Prepare a statement of partnership equity for 20Y2. If any amounts are zero, enter in "0". Total 88,000 16,000 X 124,100 X 60,000 X 10,000 Total 160,000 X 10,000

Total current assets Property, plant, and equipment: Land Building Less Accumulated Depreciation Office Equipment Less Accumulated Depreciation Total property, plant, and equip. Total assets Current liabilities: Accounts Payable Salaries Payable Total liabilities Camila Ramirez, Capital Ping Xue, Capital Total partners' equity Total liabilities and partners' equity 107,500 62,500 46,000 19,400 Liabilities Partners' Equity 100,000 45,000 26,600 29,800 3,200 83,500 171,600 255,100 33,000 255,100