Question

^{Required information [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 $ 49,381 26,805 4,228 129,795 50,791 0 0 70, 470 0 2019 $ 8,697 21,015 3,097 138,257 59,791 169, 315 42, 249 34,951 111, 564 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 $44,400 cash for personal use. Equity, December 31, 2018 Equity, December 31, 2019}

Answer 1

Dec-31	2018	2019
Cash	49,381	8,697
Accounts receivable	26,805	21,015
Office supplies	4,228	3,097
Office equipment	129,795	138,257
Trucks	50,791	59,791
Building	-	169,315
Land	-	42,249
Total assets	261,000	442,421
Accounts payable	70,470	34,951
Note payable	-	111,564
Total liabilities	70,470	146,515
Total equities = Assets - Liabilities	190,530	295,906

Equity, December 31, 2018	190,530
Add: Additional investment	35,000
Add: Net income (balancing figure)	114,776
	340,306
Less: Withdrawals	44,400
Equity, December 31, 2019	295,906