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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 7
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: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
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
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
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Net income refers to the earnings of the business after deducting all the direct and indirect expenses from total revenue. 

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