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: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.5E: Classification of Assets and Liabilities Indicate the appropriate classification of each of the...

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