The ledger of Camila Ramirez and Ping Xue, attorneys-at-law, contains the following accounts and balances after...

       

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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: Ping Xue, Capital Ping Xue, Drawing Professional Fees Ramirez and Xue Trial Balance December 31, 2012 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 Salary Expense Depreciation Expense-Building Heating and Lighting Expense Depreciation Expense-Office Equipment Property Tax Expense Supplies Expense Miscellaneous Expense Debit Balances Credit Balances Required: 39,900 38,000 1,400 95,000 104,600 43,700 42,800 61,800 138,700 13,800 6,800 4,300 8,600 4,900 2,900 607,200 59,400 18,400 28,300 3,000 100,000 57,000 341,100 607,200 The balance in Xue's capital account includes an additional investment of $10,000 made on May 5, 2012. 1. Prepare an income statement for 20Y2, indicating the division of net income. The partnership agreement provides for salary allowances of $37,000 to Ramirez and $45,000 to Xue, allowances of 10% on each partner's capital balan at the beginning of the fiscal year, and equal division of the remaining net income or net loss. For the Year Ended December 31, 20Y2 $ Operating expenses: Total operating expenses Division of net income: Salary allowance Interest allowance Remaining income Ramirez and Xue Division of Income For the Year Ended December 31, 20Y2 Net income $ Camila Ramirez Ping Xue Total $ $ Balances, January 1, 20Y2 Capital additions Net income for the year Partner withdrawals Balances, December 31, 20Y2 $ $ 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 $ $ $ $ 3. Prepare a balance sheet as of the end of 20Y2. Ramirez and Xue Balance Sheet December 31, 20Y2 Current assets: Total current assets Property, plant, and equipment: Assets Total property, plant, and equip. Total assets Current liabilities: Total liabilities Liabilities Partners' Equity Total partners' equity Total liabilities and partners' equity ta LA tA tfr $ | 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: Ping Xue, Capital Ping Xue, Drawing Professional Fees Ramirez and Xue Trial Balance December 31, 2012 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 Salary Expense Depreciation Expense-Building Heating and Lighting Expense Depreciation Expense-Office Equipment Property Tax Expense Supplies Expense Miscellaneous Expense Debit Balances Credit Balances Required: 39,900 38,000 1,400 95,000 104,600 43,700 42,800 61,800 138,700 13,800 6,800 4,300 8,600 4,900 2,900 607,200 59,400 18,400 28,300 3,000 100,000 57,000 341,100 607,200 The balance in Xue's capital account includes an additional investment of $10,000 made on May 5, 2012. 1. Prepare an income statement for 20Y2, indicating the division of net income. The partnership agreement provides for salary allowances of $37,000 to Ramirez and $45,000 to Xue, allowances of 10% on each partner's capital balan at the beginning of the fiscal year, and equal division of the remaining net income or net loss. For the Year Ended December 31, 20Y2 $ Operating expenses: Total operating expenses Division of net income: Salary allowance Interest allowance Remaining income Ramirez and Xue Division of Income For the Year Ended December 31, 20Y2 Net income $ Camila Ramirez Ping Xue Total $ $ Balances, January 1, 20Y2 Capital additions Net income for the year Partner withdrawals Balances, December 31, 20Y2 $ $ 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 $ $ $ $ 3. Prepare a balance sheet as of the end of 20Y2. Ramirez and Xue Balance Sheet December 31, 20Y2 Current assets: Total current assets Property, plant, and equipment: Assets Total property, plant, and equip. Total assets Current liabilities: Total liabilities Liabilities Partners' Equity Total partners' equity Total liabilities and partners' equity ta LA tA tfr $ |

Answer rating: 100% (QA)

1 Income Statement for 20Y2 Operating Expenses Salary Expense 138700 Depreciation Expense Building 13800 Heating and Lighting Expense 6800 Depreciatio... View the full answer