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The net income is wrong, please help me to fix it. Required information Problem 2-5A Computing net income from equity analysis, preparing a balance sheet,
The net income is wrong, please help me to fix it.
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, 2016 and 2017. $ December 31 Cash Accounts receivable Office supplies Office equipment Trucks Building Land Accounts payable Note payable 2016 $ 56, 476 30, 656 4, 836 148, 444 58, 088 0 2017 11, 239 24, 034 3,542 158, 121 67, 088 193, 641 48, 322 39,973 141,963 80,595 0 Problem 2-5A Part 2 2. Compute net income for 2017 by comparing total equity amounts for these two years and using the following information: During 2017, the owner invested $34,000 additional cash in the business and withdrew $24,000 cash for personal use. $ Equity, December 31, 2016 Add: Owner's investment Add: Net income 217,905 34,000 278,082 529,987 24,000 Less: Owner withdrawals Equity, December 31, 2017 $ 505,987Step by Step Solution
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