Question

[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, 2014 and 2015. December 31 Cash Accounts receivable Office supplies Office equipment Trucks Building Land Accounts payable Note payable 2014 2015 $ 44,178 $ 6,832 23,980 18,801 3,783 2.771 123,689 116.120 45,439 54,439 0151,475 0 37799 63,045 31.269 0 89.274 Late in December 2015, the business purchased a small office building and land for $189,274 It paid $100,000 cash toward the purchase and a $89.274 note payable was signed for the balance. Mr. Nettie had to invest $36,000 cash in the business in exchange for common stock) to enable it to pay the $100,000 cash. The business also pays $3,100 cash per month for dividends.

Answer 1

63,045 Assets Cash $ Accounts Receivable $ Office Supplies $ Office Equipment $ Trucks $ Total Assets $ NETTLE DISTRIBUTION Balance Sheet December 31, 2014 Liabilities 44,178 Accounts Payable $ 23,980 3,783 1,16,120 Equity 45,439 Total Equity $ 2,33,500 Total Liabilities and equity $ 1,70,455 2,33,500 1 63,045 89,274 2 B 1 5 Assets 5 Cash $ Accounts Receivable $ 3 Office Supplies $ Office Equipment $ Trucks $ 1 Building $ 2 Land $ Total Assets $ NETTLE DISTRIBUTION Balance Sheet December 31, 2015 Liabilities 6,832 Accounts Payable $ 18,801 Notes Payable $ 2,771 1,23,689 54,439 1,51,475 Equity 37,799 Total Equity $ 3,95,806 Total Liabilities and equity $ 2,43,487 3,95,806 1

Equity, December 31, 2014 $ 3 Add: Stock Issuances $ 7 Add: Net Income $ Less: Dividends $ 5 7 3 Equity, December 31, 2015 $ 1,70,455 36,000 74,232 37,200 2,43,487