Instructions: 1. under division of net income, please provide totals of the foll
ID: 2451516 • Letter: I
Question
Instructions:
1. under division of net income, please provide totals of the followings: salary allowance, interest allowance, remaining income(loss).
2. under statement of partnership equity please provide totals of the followings:
Capital, December 31, 2014
3. under balance sheet december 31,2014 what is the total plant assets?
Thanks
Ramirez and xue Income Statement For the Year ended December 31, 2014 Professional fees 555300 Less: Expenses Salary Expense 384900 Depreciation Expense - Building 12900 Heating and lighting business 10500 Depreciation Expense - Office equipment 6300 Property Tax expense 3200 Supplies expense 3000 Miscellaneous expense 2500 Total Expense 423300 Net Income 132000 Distribution of Income Camila Ramirex Ping Xue Salary 50000 65000 Interest on capital 15000 16200 Balance - Equally -7100 -7100 Total 57900 74100 Ramirez and xue Statement of Partenership Equity For the Year ended December 31, 2014 Camila Ramirex Ping Xue Balance - Beginning 125000 135000 Add: additional Investment 20000 Share of Profits 57900 74100 182900 229100 Less: Drawings 35000 50000 Balance Ending 147900 179100 Ramirez and xue Balance Sheet As on December 31, 2014 Assets Current Assets Cash 70300 Accounts receivable 33600 Supplies 5800 Total Current Assets 109700 Property, Plant & Equipment Land 128000 Building 175000 Less: Accumulated Dep - Building 80000 95000 Office Equipment 42000 Less: Accumulated Dep - Equipment 25300 16700 Total Assets 349400 Liabilities and Owner's Capital Current Liabilites Accounts Payable 12400 Salaries Payable 10000 Total Current Liabilites 22400 Partner's Capital Camila Ramirex 147900 Ping Xue 179100 327000 Total Liabilities and Owner's Capital 349400
Explanation / Answer
Question 1. Net Income 132000 Salary Allowance: Camila 50000 Ping Xue 65000 Total Salary Allowence 115000 Interest Allowance: Camila 15000 Ping Xue 16200 Total Interest Allowence 31200 Remaining Net Loss -14200 Question 2 Camila Ping Xue Total Capital,January1,2014 147900 179100 327000 Additional investment during the year, 0 20000 20000 Subtotal, 147900 199100 347000 Net income for the year, 57900 74100 132000 Subtotal, 205800 273200 479000 Withdrawals during the year, 35000 50000 85000 Capital, December 31, 2014 170800 223200 394000 Question 3. Land 128000 Building 95000 Office Equipments 16700 Book Value of Property plant and equipment 239700