Year 2. December 31 Cash Accounts receivable office supplies office equipment Trucks Building Land Accounts payable Note payable Equity, December 31, Year 1 Add: Net income Add: Owner's investment Less: Dividends Year 1 $ 43,989 23,878 3,767 Equity, December 31, Year 2 115,622 45,244 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 $35,000 additional cash in the business in exchange for common stock, and the company paid a $39,600 cash dividend. 0 0 62,775 Year 2 $ 6,764 18,720 2,759 123,160 54,244 150,826 37,638 31,135 88,464 $ 35,000 35,000 35,000
Year 2. December 31 Cash Accounts receivable office supplies office equipment Trucks Building Land Accounts payable Note payable Equity, December 31, Year 1 Add: Net income Add: Owner's investment Less: Dividends Year 1 $ 43,989 23,878 3,767 Equity, December 31, Year 2 115,622 45,244 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 $35,000 additional cash in the business in exchange for common stock, and the company paid a $39,600 cash dividend. 0 0 62,775 Year 2 $ 6,764 18,720 2,759 123,160 54,244 150,826 37,638 31,135 88,464 $ 35,000 35,000 35,000
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter6: Receivables And Inventories
Section: Chapter Questions
Problem 6.2MBA: Allowance method Using transactions listed in £6-S. indicate the effects of each transaction on the...
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Question
![Year 2.
December 31
Cash
Accounts receivable
office supplies
office equipment
Trucks
Building
Land
Accounts payable
Note payable
Equity, December 31, Year 1
Add: Net income
Add: Owner's investment.
Less: Dividends
Year 1
$ 43,989
23,878
3,767
115,622
45,244
Equity, December 31, Year 2
0
0
62,775
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 $35,000 additional cash in the business in exchange for common stock, and the company paid a $39,600
cash dividend.
Year 2
$ 6,764
18,720
2,759
123,160
54,244
150,826
37,638
31,135
88,464
35,000
35,000
35,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8974b29c-b1c7-4aca-aa2d-f7fb17b7d72a%2Fd448497f-fdbe-4805-9d46-c58fa9e1bd58%2F1qheh4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Year 2.
December 31
Cash
Accounts receivable
office supplies
office equipment
Trucks
Building
Land
Accounts payable
Note payable
Equity, December 31, Year 1
Add: Net income
Add: Owner's investment.
Less: Dividends
Year 1
$ 43,989
23,878
3,767
115,622
45,244
Equity, December 31, Year 2
0
0
62,775
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 $35,000 additional cash in the business in exchange for common stock, and the company paid a $39,600
cash dividend.
Year 2
$ 6,764
18,720
2,759
123,160
54,244
150,826
37,638
31,135
88,464
35,000
35,000
35,000
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