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 $ 49,760 27,010 4,261 130,790 51,179 0 0 71,010 0 2019 $ 8,832 21,176 3,121 139,316 60,179 170, 612 42,575 35,219 113, 187

Answer 1

Balance Sheet 31-12-2018
Assets		Liabilities
Cash	$            49,760	Account Payable	$            71,010
Account Receivables	$            27,010	Note Payable	$                     -
Office Supplies	$              4,261
Office Equipment	$        1,30,790
Truck	$            51,179	Total Liabilities	$            71,010
Building	$                     -	Equity	$        1,91,990
Land	$                     -	Total Equity	$        1,91,990
Total Assets	$        2,63,000	Total Liabilities & equity	$        2,63,000
Balance Sheet 31-12-2019
Assets		Liabilities
Cash	$              8,832	Account Payable	$            35,219
Account Receivables	$            21,176	Note Payable	$        1,13,187
Office Supplies	$              3,121
Office Equipment	$        1,39,316
Truck	$            60,179	Total Liabilities	$        1,48,406
Building	$        1,70,612	Equity	$        2,97,405
Land	$            42,575	Total Equity	$        2,97,405
Total Assets	$        4,45,811	Total Liabilities & equity	$        4,45,811