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 Add: Owner's investment Less: Dividends Year 1 $ 52,692 28,602 4,512 138,498 54,196 Equity, December 31, Year 2 0 0 75,195 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 $36,000 additional cash in the business in exchange for common stock, and the company paid a $37,200 cash dividend. Year 2 $ $9,883 22,424 3,305 147,527 63,196 180,667 45,083 37,295 125,750 36,000 36,000 37,200 (1,200)
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 Add: Owner's investment Less: Dividends Year 1 $ 52,692 28,602 4,512 138,498 54,196 Equity, December 31, Year 2 0 0 75,195 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 $36,000 additional cash in the business in exchange for common stock, and the company paid a $37,200 cash dividend. Year 2 $ $9,883 22,424 3,305 147,527 63,196 180,667 45,083 37,295 125,750 36,000 36,000 37,200 (1,200)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 84.1C
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