The ledger of Camila Ramirez and Ping Xue, attorneys-at-law, contains the following ac- counts and balances after adjustments have been recorded on December 31, 20Y2: Ramirez and Xue Trial Balance December 31, 20Y2 Credit Balances Debit Balances Cash 70,300 Accounts Receivable 33,600 Supplies 5,800 Land 128,000 Building Accumulated Depreciation-Building Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable Salaries Payable Camila Ramirez, Capital Camila Ramirez, Drawing Ping Xue, Capital Ping Xue, Drawing 175,000 80,000 42,000 25,300 12,400 10,000 125,000 35,000 155,000 50,000 Professional Fees 555,300 Salary Expense Depreciation Expense-Building Heating and Lighting Expense Depreciation Expense-Office Equipment 384,900 12,900 10,500 6,300 Property Tax Expense Supplies Expense Miscellaneous Expense 3,200 3,000 2,500 963,000 963,000 The balance in Xue's capital account includes an additional investment of $20,000 made on May 5, 20Y2. Instructions 1. Prepare an income statement for 20Y2, indicating the division of net income. The part- nership agreement provides for salary allowances of $50,000 to Ramirez and $65,000 to Xue, allowances of 12% 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. 3. Prepare a balance sheet as of the end of 20Y2.
The ledger of Camila Ramirez and Ping Xue, attorneys-at-law, contains the following ac- counts and balances after adjustments have been recorded on December 31, 20Y2: Ramirez and Xue Trial Balance December 31, 20Y2 Credit Balances Debit Balances Cash 70,300 Accounts Receivable 33,600 Supplies 5,800 Land 128,000 Building Accumulated Depreciation-Building Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable Salaries Payable Camila Ramirez, Capital Camila Ramirez, Drawing Ping Xue, Capital Ping Xue, Drawing 175,000 80,000 42,000 25,300 12,400 10,000 125,000 35,000 155,000 50,000 Professional Fees 555,300 Salary Expense Depreciation Expense-Building Heating and Lighting Expense Depreciation Expense-Office Equipment 384,900 12,900 10,500 6,300 Property Tax Expense Supplies Expense Miscellaneous Expense 3,200 3,000 2,500 963,000 963,000 The balance in Xue's capital account includes an additional investment of $20,000 made on May 5, 20Y2. Instructions 1. Prepare an income statement for 20Y2, indicating the division of net income. The part- nership agreement provides for salary allowances of $50,000 to Ramirez and $65,000 to Xue, allowances of 12% 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. 3. Prepare a balance sheet as of the end of 20Y2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The ledger of Camila Ramirez and Ping Xue, attorneys-at-law, contains the following ac-
counts and balances after adjustments have been recorded on December 31, 20Y2:
Ramirez and Xue
Trial Balance
December 31, 20Y2
Credit
Balances
Debit
Balances
Cash
70,300
Accounts Receivable
33,600
Supplies
5,800
Land
128,000
Building
Accumulated Depreciation-Building
Office Equipment
Accumulated Depreciation-Office Equipment
Accounts Payable
Salaries Payable
Camila Ramirez, Capital
Camila Ramirez, Drawing
Ping Xue, Capital
Ping Xue, Drawing
175,000
80,000
42,000
25,300
12,400
10,000
125,000
35,000
155,000
50,000
Professional Fees
555,300
Salary Expense
Depreciation Expense-Building
Heating and Lighting Expense
Depreciation Expense-Office Equipment
384,900
12,900
10,500
6,300
Property Tax Expense
Supplies Expense
Miscellaneous Expense
3,200
3,000
2,500
963,000
963,000
Transcribed Image Text:The balance in Xue's capital account includes an additional investment of $20,000 made
on May 5, 20Y2.
Instructions
1. Prepare an income statement for 20Y2, indicating the division of net income. The part-
nership agreement provides for salary allowances of $50,000 to Ramirez and $65,000
to Xue, allowances of 12% 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.
3. Prepare a balance sheet as of the end of 20Y2.
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