The accounting records of Nettle Distribution show the following assets and liabilities as of December 31...

 
  

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The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and Year 2. December 31 Cash Accounts receivable Office supplies Office equipment Trucks Building Land Accounts payable Note payable Year 1 $ 54,773 29,732 4,690 143,968 56,337 0 0 78,165 0 Year 2 $ 10,629 23,310 3,435 153,353 65,337 187,803 46,864 38,768 134,667 Required 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 $34,000 additional cash in the business in exchange for common stock, and the company paid a $45,600 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 Cash Accounts receivable Office supplies Office equipment Trucks Building Land Accounts payable Note payable Year 1 $ 54,773 29,732 4,690 143,968 56,337 0 0 78,165 0 Year 2 $ 10,629 23,310 3,435 153,353 65,337 187,803 46,864 38,768 134,667 Required 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 $34,000 additional cash in the business in exchange for common stock, and the company paid a $45,600 cash dividend

Answer rating: 100% (QA)

Compute the net income for Year 2 Step 1 Calculate Total Equity for Year 1 and ... View the full answer