The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and Year 2. Year 2 $ 9,612 22,102 3,257 145,408 62,418 178,072 44,436 36,759 122,508 December 31 Year 1 $ 51,935 28,191 4,447 136,509 53,418 Cash Accounts receivable Office supplies Office equipment Trucks Building Land 74,115 Accounts payable Note payable Compute net income for Year 2 by comparing total equity amounts for these two years and using the following information: During ar 2, the owner invested $36,000 additional cash in the business in exchange for common stock, and the company paid a $25,200 h dividend.
The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and Year 2. Year 2 $ 9,612 22,102 3,257 145,408 62,418 178,072 44,436 36,759 122,508 December 31 Year 1 $ 51,935 28,191 4,447 136,509 53,418 Cash Accounts receivable Office supplies Office equipment Trucks Building Land 74,115 Accounts payable Note payable Compute net income for Year 2 by comparing total equity amounts for these two years and using the following information: During ar 2, the owner invested $36,000 additional cash in the business in exchange for common stock, and the company paid a $25,200 h dividend.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Year 1
$ 51,935
28,191
4,447
136,509
53,418
December 31
Year 2
$ 9,612
22,102
3,257
145,408
62,418
178,072
Cash
Accounts receivable
Office supplies
Office equipment
Trucks
Building
Land
44 ,436
74,115
36,759
Accounts payable
Note payable
122,508
2. Compute net income for Year 2 by comparing total equity amounts for these two years and using the
Year 2, the owner invested $36,000 additional cash in the business in exchange for common stock, and the company paid a $25,200
cash dividend.
lowing information: During
Equity, December 31, Year 1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F950ccb0b-88f0-424e-a789-46ed3bd2a086%2F0bf850aa-2d6c-4bf5-9260-48f8264cb16c%2Fmqwr9qz_processed.jpeg&w=3840&q=75)
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.
Year 1
$ 51,935
28,191
4,447
136,509
53,418
December 31
Year 2
$ 9,612
22,102
3,257
145,408
62,418
178,072
Cash
Accounts receivable
Office supplies
Office equipment
Trucks
Building
Land
44 ,436
74,115
36,759
Accounts payable
Note payable
122,508
2. Compute net income for Year 2 by comparing total equity amounts for these two years and using the
Year 2, the owner invested $36,000 additional cash in the business in exchange for common stock, and the company paid a $25,200
cash dividend.
lowing information: During
Equity, December 31, Year 1

Transcribed Image Text:Accounts receivable
Office supplies
Office equipment
28,191
4,447
136,509
53,418
22,102
3,257
145,408
62,418
178,072
44,436
36,759
122,508
Trucks
Building
Land
Accounts payable
Note payable
74,115
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 $25,200
cash dividend.
Equity, December 31, Year 1
2$
Equity, December 31, Year 2
Expert Solution
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Step 1
Net income refers to the earnings of the business after deducting all the direct and indirect expenses from total revenue.
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