Question

Required information Problem 2-5A Computing net income from equity analysis, preparing a balance sheet, and computing the debt ratio LO C2, A1, A2, P3 [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 Cash Accounts receivable Office supplies Office equipment Trucks Building Land Accounts payable Note payable 2018 2019 $ 54,300 $ 10, 460 29,475 23,108 4,6493 ,405 142,725 152,029 55,851 64,851 0 186,181 0 46, 460 77,490 38,433 0 132, 641 Problem 2-5A Part 1 Required: 1. Prepare balance sheets for the business as of December 31, 2018 and 2019. Hint: Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities. Complete this question by entering your answers in the tabs below.

Answer 1

Answers

--2018

Nettle Distribution
Balance Sheet
at Dec 31, 2018
ASSETS		LIABILITIES
Cash	$54,300	Accounts Payable	$77,490
Accounts receivables	$29,475
Office Supplies	$4,649
Office Equipment	$142,725	EQUITY
Truck	$55,851	Total Equity	$209,510
Total Assets	$287,000	Total Liabilities & Equity	$287,000

--2019

Nettle Distribution
Balance Sheet
at Dec 31, 2019
ASSETS		LIABILITIES
Cash	$10,460	Accounts Payable	$38,433
Accounts receivables	$23,108	Notes Payable	$132,641
Office Supplies	$3,405
Office Equipment	$152,029
Truck	$64,851	Total Liabilities	$171,074
Building	$186,181	EQUITY
Land	$46,460	Total Equity	$315,420
Total Assets	$486,494	Total Liabilities & Equity	$486,494