[The following information applies to the questions displayed below.] The accounting records of Nettle Distribution show the...

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Accounting

[The following information applies to the questionsdisplayed below.]
The accounting records of Nettle Distribution show the followingassets and liabilities as of December 31, 2016 and 2017.
December31 2016 2017
Cash $ 42,759 $ 6,324
Accounts receivable 23,210 18,197
Office supplies 3,661 2,682
Office equipment 112,390 119,717
Trucks 43,980 52,980
Building 0 146,610
Land 0 36,583
Accounts payable 61,020 30,264
Note payable 0 83,193
Required:
1. Prepare balance sheets for the business as ofDecember 31, 2016 and 2017. (Hint: Report only totalequity on the balance sheet and remember that total equity equalsthe difference between assets and liabilities.)

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4.0 Ratings (487 Votes)

Equity + Liabilities	2016	2017	Assets	2016	2017
	Amount $	Amount $		Amount $	Amount $
Equity	164,980	269,636	Fixed Assets
(Balancing Figure)			Office Equipment	112,390	119,717
			Trucks	43,980	52,980
Long term liabilities			Building	-	146,610
Note Payable	-	83,193	Land	-	36,583

Current Liabilities			Current Assets
Accounts Payable	61,020	30,264	Cash	42,759	6,324
			Accounts Receivable	23,210	18,197
			Office Supplies	3,661	2,682

Total	226,000	383,093	Total	226,000	383,093

We know that Assets = Liabilities + Equity

In the present scenario, we have all the figures of Assets and Liabilities but we do not have figure of Equity. So, using the above equation, we will find the figure of equity as balancing figure as follows

Equity = Assets - Liabilities

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December31	2016		2017
Cash	$	42,759	$	6,324
Accounts receivable		23,210		18,197
Office supplies		3,661		2,682
Office equipment		112,390		119,717
Trucks		43,980		52,980
Building		0		146,610
Land		0		36,583
Accounts payable		61,020		30,264
Note payable		0		83,193