Required information The following information applies to th

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, 2016 and 2017 $53, 260 10, 087 Cash Accounts receivable 28,910 22,666 office supplies office equipment 139,990 149, 116 4, 560 3,340 Trucks Building Land Accounts payable 76,005 37,697 Note payable 54,780 63, 780 0 182,613 45,569 0 128, 182 2. Compute net income for 2017 by comparing total equity amounts for these two years and using the following information: During 2017, the owner invested $33,000 additional cash in the business (in exchange for common s iavdenos stock) and the c KPrev 11 12 of 12 Next >

Solution

Balance sheet

2016

2017

cash

53260

10087

accounts receivables

28910

22666

office supplies

4560

3340

office equipment

133990

149116

trucks

54780

63780

building

0

182613

land

0

45569

total of assets

275500

477171

liabilities and shareholders equity

accounts payable

76005

37697

notes payable

0

128182

total of liabilities

76005

165879

shareholders equity= total of liabilities and equities-total of liabilities

199495

311292

total of liabilities and shareholders equity

275500

477171

statement of shareholders equity

equity at year end 2016

199495

add net income

311291+26400-33000-199495

105197

add owners investment

33000

less dividend

26400

equity at december 31 2017

311292

Balance sheet	2016	2017
cash	53260	10087
accounts receivables	28910	22666
office supplies	4560	3340
office equipment	133990	149116
trucks	54780	63780
building	0	182613
land	0	45569
total of assets	275500	477171
liabilities and shareholders equity
accounts payable	76005	37697
notes payable	0	128182
total of liabilities	76005	165879
shareholders equity= total of liabilities and equities-total of liabilities	199495	311292
total of liabilities and shareholders equity	275500	477171
statement of shareholders equity
equity at year end 2016		199495
add net income	311291+26400-33000-199495	105197
add owners investment		33000
less dividend		26400
equity at december 31 2017		311292