Cash $ 64,300 15,640 Accounts receivable 26,240 19,100 1,960 44,000 44,000 148,0
ID: 2337835 • Letter: C
Question
Cash $ 64,300 15,640 Accounts receivable 26,240 19,100 1,960 44,000 44,000 148,000 157,000 0 80,000 0 60,000 3,500 33,500 0 40,000 office supplies Office equipment Trucks Building Land Accounts payable Note payable 3,160 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 $35,000 additional cash in the business and withdrew $19,000 cash for personal use. Equity, December 31, 2016 Equity. December 31, 2017Explanation / Answer
Equity balances (Beginning and Ending) 2016 2017 Total Assets: Cash 64300 15640 Accounts receivable 26240 19100 Office Supplies 3160 1960 Office equipment 44000 44000 Trucks 148000 157000 Building 0 80000 Land 0 60000 Total assets: 285700 377700 Less: Liabilities Accounts payable 3500 33500 Note payable 0 40000 Equity balance 282200 304200 Equity Dec 31 2016 282200 Add: Investment 35000 Net Income 6000 323200 Less: Withdrawals 19000 Equity Dec31 2017 304200 Note: Net Income for the year: Equity ending 304200 Add: Withdrawals 19000 Less: Investment -35000 Less: Beginning Equity -282200 Net Income for the year: 6000