- Required Information The Following Information Applies To The Questions Displayed Below The Accounting Records Of Net 1 (109.88 KiB) Viewed 46 times
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 Year 1 $ 52,692 28,602 4,512 138,498 54, 196 0 0 75,195 0 Year 2 $ 9,883 22,424 3,305 147,527 63, 196 180,667 45, 083 37,295 125,750 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 $33,000 additional cash in the business in exchange for common stock, and the
company paid a $48,000 cash dividend. Answer is not complete. Equity, December 31, Year 1 $ 203,305 33,000 Add: Owner's investment ✓ Add: Net income ✓ 236,305 Less: Dividends 48,000 Equity, December 31, Year 2 $ 188,305