The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and Year 2. December 31 Year 1 Year 2 Cash $ 50,138 $ 8,968 Accounts receivable 27,216 21,337 Office supplies 4,293 3,144 Office equipment 131,785 140,376 Trucks 51,568 60,568 Building 0 171,910 Land 0 42,899 Accounts payable 71,550 35,487 Note payable 0 114,809 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 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 $44,400 cash dividend
The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and Year 2. December 31 Year 1 Year 2 Cash $ 50,138 $ 8,968 Accounts receivable 27,216 21,337 Office supplies 4,293 3,144 Office equipment 131,785 140,376 Trucks 51,568 60,568 Building 0 171,910 Land 0 42,899 Accounts payable 71,550 35,487 Note payable 0 114,809 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 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 $44,400 cash dividend
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![College Accounting, Chapters 1-27 (New in Account…](https://www.bartleby.com/isbn_cover_images/9781305666160/9781305666160_smallCoverImage.gif)
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
![College Accounting, Chapters 1-27 (New in Account…](https://www.bartleby.com/isbn_cover_images/9781305666160/9781305666160_smallCoverImage.gif)
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)