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 50,400 Accounts Receivable 48,000 Supplies 1,800 Land 120,000 Building 128,600 Accumulated Depreciation—Building 75,000 Office Equipment 55,200 Accumulated Depreciation—Office Equipment 23,300 Accounts Payable 35,800 Salaries Payable 3,800 Camila Ramirez, Capital 120,000 Camila Ramirez, Drawing 54,000 Ping Xue, Capital 72,000 Ping Xue, Drawing 78,000 Professional Fees 433,400 Salary Expense 175,200 Depreciation Expense—Building 17,400 Heating and Lighting Expense 8,600 Depreciation Expense—Office Equipment 5,400 Property Tax Expense 10,800 Supplies Expense 6,200 Miscellaneous Expense 3,700 763,300 763,300 The balance in Xue's capital account includes an additional investment of $12,000 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 $47,000 to Ramirez and $58,000 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 $fill in the blank 2 Operating expenses: $fill in the blank 4 fill in the blank 6 fill in the blank 8 fill in the blank 10 fill in the blank 12 fill in the blank 14 fill in the blank 16 Total operating expenses fill in the blank 17 $fill in the blank 19 Ramirez and Xue Division of Income For the Year Ended December 31, 20Y2 Camila Ramirez Ping Xue Total Division of net income: Salary allowance $fill in the blank 20 $fill in the blank 21 $fill in the blank 22 Interest allowance fill in the blank 23 fill in the blank 24 fill in the blank 25 Remaining income fill in the blank 26 fill in the blank 27 fill in the blank 28 Net income $fill in the blank 29 $fill in the blank 30 $fill in the blank 31 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 $fill in the blank 32 $fill in the blank 33 $fill in the blank 34 Capital additions fill in the blank 35 fill in the blank 36 fill in the blank 37 Net income for the year fill in the blank 38 fill in the blank 39 fill in the blank 40 Partner withdrawals fill in the blank 41 fill in the blank 42 fill in the blank 43 Balances, December 31, 20Y2 $fill in the blank 44 $fill in the blank 45 $fill in the blank 46 3. Prepare a balance sheet as of the end of 20Y2. Ramirez and Xue Balance Sheet December 31, 20Y2 Assets Current assets: $fill in the blank 48 fill in the blank 50 fill in the blank 52 Total current assets $fill in the blank 53 Property, plant, and equipment: $fill in the blank 55 $fill in the blank 57 fill in the blank 59 fill in the blank 60 $fill in the blank 62 fill in the blank 64 fill in the blank 65 Total property, plant, and equip. fill in the blank 66 Total assets $fill in the blank 67 Liabilities Current liabilities: $fill in the blank 69 fill in the blank 71 Total liabilities fill in the blank 72 Partners' Equity $fill in the blank 74 fill in the blank 76 Total partners' equity fill in the blank 77 Total liabilities and partners' equity $fill in the blank 78

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 50,400 Accounts Receivable 48,000 Supplies 1,800 Land 120,000 Building 128,600 Accumulated Depreciation—Building 75,000 Office Equipment 55,200 Accumulated Depreciation—Office Equipment 23,300 Accounts Payable 35,800 Salaries Payable 3,800 Camila Ramirez, Capital 120,000 Camila Ramirez, Drawing 54,000 Ping Xue, Capital 72,000 Ping Xue, Drawing 78,000 Professional Fees 433,400 Salary Expense 175,200 Depreciation Expense—Building 17,400 Heating and Lighting Expense 8,600 Depreciation Expense—Office Equipment 5,400 Property Tax Expense 10,800 Supplies Expense 6,200 Miscellaneous Expense 3,700 763,300 763,300 The balance in Xue's capital account includes an additional investment of $12,000 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 $47,000 to Ramirez and $58,000 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 $fill in the blank 2 Operating expenses: $fill in the blank 4 fill in the blank 6 fill in the blank 8 fill in the blank 10 fill in the blank 12 fill in the blank 14 fill in the blank 16 Total operating expenses fill in the blank 17 $fill in the blank 19 Ramirez and Xue Division of Income For the Year Ended December 31, 20Y2 Camila Ramirez Ping Xue Total Division of net income: Salary allowance $fill in the blank 20 $fill in the blank 21 $fill in the blank 22 Interest allowance fill in the blank 23 fill in the blank 24 fill in the blank 25 Remaining income fill in the blank 26 fill in the blank 27 fill in the blank 28 Net income $fill in the blank 29 $fill in the blank 30 $fill in the blank 31 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 $fill in the blank 32 $fill in the blank 33 $fill in the blank 34 Capital additions fill in the blank 35 fill in the blank 36 fill in the blank 37 Net income for the year fill in the blank 38 fill in the blank 39 fill in the blank 40 Partner withdrawals fill in the blank 41 fill in the blank 42 fill in the blank 43 Balances, December 31, 20Y2 $fill in the blank 44 $fill in the blank 45 $fill in the blank 46 3. Prepare a balance sheet as of the end of 20Y2. Ramirez and Xue Balance Sheet December 31, 20Y2 Assets Current assets: $fill in the blank 48 fill in the blank 50 fill in the blank 52 Total current assets $fill in the blank 53 Property, plant, and equipment: $fill in the blank 55 $fill in the blank 57 fill in the blank 59 fill in the blank 60 $fill in the blank 62 fill in the blank 64 fill in the blank 65 Total property, plant, and equip. fill in the blank 66 Total assets $fill in the blank 67 Liabilities Current liabilities: $fill in the blank 69 fill in the blank 71 Total liabilities fill in the blank 72 Partners' Equity $fill in the blank 74 fill in the blank 76 Total partners' equity fill in the blank 77 Total liabilities and partners' equity $fill in the blank 78

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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Question

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	50,400
Accounts Receivable	48,000
Supplies	1,800
Land	120,000
Building	128,600
Accumulated Depreciation—Building		75,000
Office Equipment	55,200
Accumulated Depreciation—Office Equipment		23,300
Accounts Payable		35,800
Salaries Payable		3,800
Camila Ramirez, Capital		120,000
Camila Ramirez, Drawing	54,000
Ping Xue, Capital		72,000
Ping Xue, Drawing	78,000
Professional Fees		433,400
Salary Expense	175,200
Depreciation Expense—Building	17,400
Heating and Lighting Expense	8,600
Depreciation Expense—Office Equipment	5,400
Property Tax Expense	10,800
Supplies Expense	6,200
Miscellaneous Expense	3,700
	763,300	763,300

The balance in Xue's capital account includes an additional investment of $12,000 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 $47,000 to Ramirez and $58,000 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
		$fill in the blank 2
Operating expenses:
	$fill in the blank 4
	fill in the blank 6
	fill in the blank 8
	fill in the blank 10
	fill in the blank 12
	fill in the blank 14
	fill in the blank 16
Total operating expenses		fill in the blank 17
		$fill in the blank 19

Ramirez and Xue Division of Income For the Year Ended December 31, 20Y2
	Camila Ramirez	Ping Xue	Total
Division of net income:
Salary allowance	$fill in the blank 20	$fill in the blank 21	$fill in the blank 22
Interest allowance	fill in the blank 23	fill in the blank 24	fill in the blank 25
Remaining income	fill in the blank 26	fill in the blank 27	fill in the blank 28
Net income	$fill in the blank 29	$fill in the blank 30	$fill in the blank 31

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	$fill in the blank 32	$fill in the blank 33	$fill in the blank 34
Capital additions	fill in the blank 35	fill in the blank 36	fill in the blank 37
Net income for the year	fill in the blank 38	fill in the blank 39	fill in the blank 40
Partner withdrawals	fill in the blank 41	fill in the blank 42	fill in the blank 43
Balances, December 31, 20Y2	$fill in the blank 44	$fill in the blank 45	$fill in the blank 46

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

Ramirez and Xue Balance Sheet December 31, 20Y2
Assets
Current assets:
		$fill in the blank 48
		fill in the blank 50
		fill in the blank 52
Total current assets			$fill in the blank 53
Property, plant, and equipment:
		$fill in the blank 55
	$fill in the blank 57
	fill in the blank 59	fill in the blank 60
	$fill in the blank 62
	fill in the blank 64	fill in the blank 65
Total property, plant, and equip.			fill in the blank 66
Total assets			$fill in the blank 67
Liabilities
Current liabilities:
		$fill in the blank 69
		fill in the blank 71
Total liabilities			fill in the blank 72
Partners' Equity
		$fill in the blank 74
		fill in the blank 76
Total partners' equity			fill in the blank 77
Total liabilities and partners' equity			$fill in the blank 78

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