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Chapter 2 Homework (required)

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Item4

Part 2 of 3

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Item 4

Item 4 Part 2 of 3 20 points

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[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, 2018 and 2019.

December 31	2018			2019
Cash	$	64,300		$	15,640
Accounts receivable		26,240			19,100
Office supplies		3,160			1,960
Office equipment		44,000			44,000
Trucks		148,000			157,000
Building		0			80,000
Land		0			60,000
Accounts payable		3,500			33,500
Note payable		0			40,000

2. Compute net income for 2019 by comparing total equity amounts for these two years and using the following information: During 2019, the owner invested $35,000 additional cash in the business and withdrew $19,000 cash for personal use.