Question

The ledger of Camila Ramirez and Ping Xue, attorneys at law,contains the following accounts and balances after adjustments havebeen recorded on december 31, 2014.

                                                                      Ramirez and xue Trial Balance December 31,2014

	Debit balances	credit balances
cash	70,300
accounts receivable	33,600
supplies	5,800
land	128,000
building	175,000
accumulated depreciation-building		80,000
office equipment	42,000
accumulated depreciation-office equipment		25,300
accounts payable		12,400
salaries payable		10,000
Camila Ramirex, Capital		125,000
Camila Ramirez, Drawing	35,000
Ping Xue, Capital		155,000
Ping Xue, Drawing	50,000
Professional fees		555,300
Salary Expense	384,900
Depreciation expense, building	12,900
heating and lighting expense	10,500
depreciation expense-office equipment	6,300
property tax expense	3,200
supplies expense	3,000
Miscellaneous expense	2,500
	963,000	963,000

         The balance inXue's capital account includes an additional investment of $20,000made on may 5, 2014.

Instructions:

1. prepare an income statement for the current fisca year,including the division of net income. the partnership agreementprovides for salary allowances of $50,000 to Ramirez and $65,000 toXue, allowances of 12% on each partners capital balance at thebegining of the fisca year, and equal division of the remaining netincome or net loss.

2. prepare a statement of partnership equity for 2014.

3. prepare a balance sheet of the end of 2014.

Thanks.