Question

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 2016 2017 Cash 64,300 15,640 Accounts receivable 26,240 19, 100 1,960 3,160 office supplies office equipment trucks Building Land Accounts payable Note payable 44,000 44,000 148,000 157,000 80,00 60,000 3,50033,500 040,000 Problem 2-5A Part1 Required: 1. Prepare balance sheets for the business as of December 31,2016 and 2017 (Hint Report only total remember that total equity equals the difference between assets and liabilities) equity on the balance sheet and

Answer 1

NETTLE DISTRIBUTION
Balance Sheet
As at December 31 2016 and 2017
	2016			2017
Assets
Current asset
Cash	$ 64,300.00			$    15,640.00
Accounts Receivable	$ 26,240.00			$    19,100.00
Office Supplies	$    3,160.00			$      1,960.00
Total Current Assets		$    93,700.00			$      36,700.00
Other Assets
Land		$                   -			$      60,000.00
Trucks		$ 148,000.00			$    157,000.00
Building		$                   -			$      80,000.00
Office Equipment		$    44,000.00			$      44,000.00
Total Assets		$ 285,700.00			$    377,700.00
Liabilities
Current Liabilities
Accounts Payable	$    3,500.00			$    33,500.00
Total Current liabilities		$      3,500.00			$      33,500.00
Long term liabilities
Notes payable		$                   -			$      40,000.00
Total Liabilities		$      3,500.00			$      73,500.00
Shareholder's Equity		$ 282,200.00			$    304,200.00
Total Liabilities and shareholder's Equity		$ 285,700.00			$    377,700.00