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 46,200 Accounts Receivable 44,000 Supplies 1,700 Land 110,000 Building 121,400 Accumulated Depreciation—Building 68,800 Office Equipment 50,600 Accumulated Depreciation—Office Equipment 21,300 Accounts Payable 32,800 Salaries Payable 3,500 Camila Ramirez, Capital 110,000 Camila Ramirez, Drawing 49,500 Ping Xue, Capital 66,000 Ping Xue, Drawing 71,500 Professional Fees 400,900 Salary Expense 160,600 Depreciation Expense—Building 15,900 Heating and Lighting Expense 7,900 Depreciation Expense—Office Equipment 5,000 Property Tax Expense 9,900 Supplies Expense 5,700 Miscellaneous Expense 3,400 703,300 703,300 The balance in Xue's capital account includes an additional investment of $11,000 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 $44,000 to Ramirez and $54,000 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 Professional Fees $fill in the blank 2 Operating expenses: Salary Expense $fill in the blank 4 Depreciation Expense-Building fill in the blank 6 Heating and Lighting Expense fill in the blank 8 Depreciation Expense-Office Equipment fill in the blank 10 Property Tax Expense fill in the blank 12 Supplies Expense fill in the blank 14 Miscellaneous Expense fill in the blank 16 Total operating expenses fill in the blank 17 Net Income $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 46,200 Accounts Receivable 44,000 Supplies 1,700 Land 110,000 Building 121,400 Accumulated Depreciation—Building 68,800 Office Equipment 50,600 Accumulated Depreciation—Office Equipment 21,300 Accounts Payable 32,800 Salaries Payable 3,500 Camila Ramirez, Capital 110,000 Camila Ramirez, Drawing 49,500 Ping Xue, Capital 66,000 Ping Xue, Drawing 71,500 Professional Fees 400,900 Salary Expense 160,600 Depreciation Expense—Building 15,900 Heating and Lighting Expense 7,900 Depreciation Expense—Office Equipment 5,000 Property Tax Expense 9,900 Supplies Expense 5,700 Miscellaneous Expense 3,400 703,300 703,300 The balance in Xue's capital account includes an additional investment of $11,000 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 $44,000 to Ramirez and $54,000 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 Professional Fees $fill in the blank 2 Operating expenses: Salary Expense $fill in the blank 4 Depreciation Expense-Building fill in the blank 6 Heating and Lighting Expense fill in the blank 8 Depreciation Expense-Office Equipment fill in the blank 10 Property Tax Expense fill in the blank 12 Supplies Expense fill in the blank 14 Miscellaneous Expense fill in the blank 16 Total operating expenses fill in the blank 17 Net Income $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

See similar textbooks

Related questions

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	46,200
Accounts Receivable	44,000
Supplies	1,700
Land	110,000
Building	121,400
Accumulated Depreciation—Building		68,800
Office Equipment	50,600
Accumulated Depreciation—Office Equipment		21,300
Accounts Payable		32,800
Salaries Payable		3,500
Camila Ramirez, Capital		110,000
Camila Ramirez, Drawing	49,500
Ping Xue, Capital		66,000
Ping Xue, Drawing	71,500
Professional Fees		400,900
Salary Expense	160,600
Depreciation Expense—Building	15,900
Heating and Lighting Expense	7,900
Depreciation Expense—Office Equipment	5,000
Property Tax Expense	9,900
Supplies Expense	5,700
Miscellaneous Expense	3,400
	703,300	703,300

The balance in Xue's capital account includes an additional investment of $11,000 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 $44,000 to Ramirez and $54,000 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
Professional Fees		$fill in the blank 2
Operating expenses:
Salary Expense	$fill in the blank 4
Depreciation Expense-Building	fill in the blank 6
Heating and Lighting Expense	fill in the blank 8
Depreciation Expense-Office Equipment	fill in the blank 10
Property Tax Expense	fill in the blank 12
Supplies Expense	fill in the blank 14
Miscellaneous Expense	fill in the blank 16
Total operating expenses		fill in the blank 17
Net Income		$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

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.