Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

O Required information [The following information applies to the questions displayed below.) The accounting records of Nettle Distribution show the following assets and liabilities as

image text in transcribed
image text in transcribed
image text in transcribed
O 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 2018 2019 Cash $ 51,557 $ 9,477 Accounts receivable 27,986 21,941 Office supplies 4,415 3,233 Office equipment 135,514 144,348 Trucks 53,028 62,028 Building 0 176, 775 Land 44,113 Accounts payable 73,575 36,491 Note payable 120,888 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. NETTLE DISTRIBUTION Balance Sheet December 31, 2018 Liabilities Assets Equity Total equity O Total liabilities and equity Total assets $ $ 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 2018 2019 Cash $ 51,557 $ 9,477 Accounts receivable 27,986 21,941 Office supplies 4,415 3,233 Office equipment 135,514 144,348 Trucks 53,028 62,028 Building 176, 775 Land 44,113 Accounts payable 73,575 36,491 Note payable 120,888 0 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 $32,000 additional cash in the business and withdrew $34,800 cash for personal use. Equity, December 31, 2018 0 Equity, December 31, 2019 $ 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 2018 2019 Cash $ 51,557 $ 9,477 Accounts receivable 27,986 21,941 Office supplies 4,415 3,233 Office equipment 135,514 144,348 Trucks 53,028 62,028 Building 2 176, 775 Land 3 44,113 Accounts payable 73,575 36,491 Note payable 120,888 3. Compute the 2019 year-end debt ratio for the business. Choose Numerator: Debt Ratio Choose Denominator: 1 = Debt Ratio Debt ratio 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cash, Corruption And Economic Development

Authors: Vikram Vashisht

1st Edition

1032096888, 9781032096889

More Books

Students also viewed these Accounting questions

Question

c. Acafeteriawhere healthy, nutritionally balanced foods are served

Answered: 1 week ago