The ledger of Jin Ding and Paul Hoffman, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 2012:The balance in Hoffman’s capital account includes an additional investment of $20,000 made on April 5, 2012.Instructions1. Prepare an income statement for the current fiscal year, indicating the division of net income. The articles of partnership provide for salary allowances of $60,000 to Ding and $75,000 to Hoffman, 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 partners’ equity for 2012.3. Prepare a balance sheet as of the end of2012.
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The ledger of Jin Ding and Paul Hoffman attorneys at law conta



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