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[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,

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[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. 12. Required: 1. Prepare balance sheets for the business as of December 31, 2014 and 2015. (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, 2014 Liabilities Assets Automobiles Building Cash Equity ity lities and equity Computer equipment Computer rental expense Computer service revenue 12. Required: 1. Prepare balance sheets for the business as of December 31, 2014 and 2015. (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, 2014 Liabilities Assets Equity Total equity Total liabilities and equity Total assets NETTLE DISTRIBUTION Balance Sheet December 31, 2015 Liabilities Assets Total liabilities Equity Total egyity Total liabilities and equity Total assets NETTLE DISTRIBUTION Balance Sheet December 31, 2015 Liabilities Assets Accounts payable Accounts receivable Advertising expense Automobiles Building lities Equity ity lities and equity 13. 2. By comparing equity amounts from the balance sheets and using the additional information presented in this problem, prepare a calculation to show how much net income was earned by the business during 2015. Equity, December 31, 2014 Add: Dividends Add: Net income Add: Stock issuances 13. 2. By comparing equity amounts from the balance sheets and using the additional information presented in this problem, prepare a calculation to show how much net income was earned by the business during 2015 Equity, December 31, 2014 Less: Dividends Less: Net loss Less: Stock issuances

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