The ledger of Aiden Durant and Jasmine Adkins, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 2012:

The balance in Adkins' capital account includes an additional investment of $10,000 made on August 10, 2012.
Instructions
1. Prepare an income statement for 2012, indicating the division of net income. The articles of partnership provide for salary allowances of $40,000 to Durant and $50,000 to Adkins, 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.
2. Prepare a statement of partners' equity for 2012.
3. Prepare a balance sheet as of the end of2012.

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Aiden, Durant, Adkins Trial Balance December 31, 2012 Debit Balances 42,000 42,300 1,500 100,000 108,100 Credit Balances Cash Accounts Receivable Supplies Land Building Accumulated Depreciation-Building Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable Salaries Payable Aiden Durant, Capital Aiden Durant, Drawing Jasmine Adkins, Capital Jasmine Adkins, Drawing Professional Fees Salary Expense Depreciation Expense-Building Property Tax Expense Heating and Lighting Expense Supplies Expense Depreciation Expense-Office Equipment Miscellaneous Expense 62,500 46,000 19,400 29,800 3,200 100,000 45,000 60,000 65,000 364,500 146,000 14,500 9,000 7,200 5,200 4,500 3,100 639,400 639,400