Financial Statements for PartnershipThe 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 XueTrial BalanceDecember 31, 20Y2 Debit Balances Credit BalancesCash53,300 Accounts Receivable50,800 Supplies1,900 Land127,000 Building139,800 Accumulated Depreciation—Building 79,400Office Equipment58,400 Accumulated Depreciation—Office Equipment 24,600Accounts Payable 37,800Salaries Payable 4,100Camila Ramirez, Capital 130,000Camila Ramirez, Drawing57,200 Ping Xue, Capital 76,200Ping Xue, Drawing82,600 Professional Fees 459,400Salary Expense185,400 Depreciation Expense—Building18,400 Property Tax Expense11,400 Heating and Lighting Expense9,100 Supplies Expense6,600 Depreciation Expense—Office Equipment5,700 Miscellaneous Expense3,900 811,500 811,500The balance in Xue' capital account includes an additional investment of $13,000 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 $50,000 to Ramirez and $61,000 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. 2. Prepare a statement of partnership equity for 20Y2. If any amounts are zero, enter in "0".3. Prepare a balance sheet as of the end of 20Y2.DO NOT GIVE SOLUTION IN IMAGE

Partnership is the relation between two or more person, it has the following characteristics They…

Answered: Financial Statements for Partnership…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	53,300
Accounts Receivable	50,800
Supplies	1,900
Land	127,000
Building	139,800
Accumulated Depreciation—Building		79,400
Office Equipment	58,400
Accumulated Depreciation—Office Equipment		24,600
Accounts Payable		37,800
Salaries Payable		4,100
Camila Ramirez, Capital		130,000
Camila Ramirez, Drawing	57,200
Ping Xue, Capital		76,200
Ping Xue, Drawing	82,600
Professional Fees		459,400
Salary Expense	185,400
Depreciation Expense—Building	18,400
Property Tax Expense	11,400
Heating and Lighting Expense	9,100
Supplies Expense	6,600
Depreciation Expense—Office Equipment	5,700
Miscellaneous Expense	3,900
	811,500	811,500

The balance in Xue' capital account includes an additional investment of $13,000 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 $50,000 to Ramirez and $61,000 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.

2. Prepare a statement of partnership equity for 20Y2. If any amounts are zero, enter in "0".

3. Prepare a balance sheet as of the end of 20Y2.

DO NOT GIVE SOLUTION IN IMAGE

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