Question

Which college or university could I go after grade 12

Answer 1

The accounting records of Nettie Distribution show the following assets and liabilities as of December 31, 2014 and 2015.

December 31 2014 2015
Cash $50,422 $9,070
Accounts receivable 27,310 21,458
Office supplies 4,317 3,162
Office equipment 132,530 141,170
Trucks 51,861 60,861
Building 0 172,882
Land 0 43,141
Accounts payable 71,955 35,688
Note payable 0 116,023

Late in December 2015, the business purchased a small office building and land for $216,023. It paid $100,000 cash toward the purchase and a $116,023 note payable was signed for the balance. Mr. Nettie had to invest $33,000 cash in the business to enable it to pay the $100,000 cash. Mr. Nettie withdraws $3,500 cash per month for personal use.

Prepare balance sheets for the business as of December 31, 2014 and 2015. (Hint: Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities.