80.2K

Verified Solution

Link Copied!

es ! Required information Problem 2-5A (Algo) Computing net income from equity analysis, preparing a balance sheet, and computing the debt ratio LO A2, P1 [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 for Year 1 and Year 2. December 31 Cash Accounts receivable Office supplies Office equipment Trucks Building Land Accounts payable Note payable Year 1 $ 54,679 29,680 4,682 Problem 2-5A (Algo) Part 1 143,720 56,239 0 DOO 0 78,030 0 Year 2 $ 10,595 23,269 3,429 153,089 65,239 187,479 46,784 38,701 134,263 Required: 1. Prepare balance sheets for the business as of December 31 for Year 1 and for Year 2. Hint: Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities.

Complete this question by entering your answers in the tabs below. Prepare the balance sheet for the business as of December 31 for Year 1. Hint: Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities. Complete this question by entering your answers in the tabs below. Prepare the balance sheet for the business as of December 31 for Year 2. Hint: Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities. Required information Problem 2-5A (Algo) Computing net income from equity analysis, preparing a balance sheet, and computing the debt ratio LO A2, P1 [The following information applles to the questions displayed below] The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and Year 2. Problem 2-5A (Algo) Part 1 Required: 1. Prepare balance sheets for the business as of December 31 for Year 1 and for Year 2 . Hint: Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities

Answer & Explanation Solved by verified expert

See Answer