FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Required information
[The following information applies to the questions displayed below.]
The accounting records of Nettle Distribution show the following assets and liabilities
as of December 31 for Year 1 and Year 2.
December 31
Cash
Accounts receivable
office supplies
office equipment
Trucks
Building
Land
Accounts payable
Note payable
Equity, December 31, Year 1
Year 1
$ 64,300
26,240
3,160
44,000
148,000
Equity, December 31, Year 2
0
0
3,500
0
2. Compute net income for Year 2 by comparing total equity amounts for these two years and using the
following information: During Year 2, the owner invested $35,000 additional cash in the business in
exchange for common stock, and the company paid a $19,000 cash dividend.
Year 2
$ 15,640
19,100
1,960
44,000
157,000
80,000
60,000
33,500
40,000
0
0
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Transcribed Image Text:Required information [The following information applies to the questions displayed below.] The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and Year 2. December 31 Cash Accounts receivable office supplies office equipment Trucks Building Land Accounts payable Note payable Equity, December 31, Year 1 Year 1 $ 64,300 26,240 3,160 44,000 148,000 Equity, December 31, Year 2 0 0 3,500 0 2. Compute net income for Year 2 by comparing total equity amounts for these two years and using the following information: During Year 2, the owner invested $35,000 additional cash in the business in exchange for common stock, and the company paid a $19,000 cash dividend. Year 2 $ 15,640 19,100 1,960 44,000 157,000 80,000 60,000 33,500 40,000 0 0
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