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The accounting records of Fabiano Distribution show the following assets and liabilities as of December 31, 2010 and 2011. |
| December 31 | 2010 | 2011 | ||
| Cash | $ | 43,894 | $ | 6,731 |
| Accounts receivable | 23,826 | 18,680 | ||
| Office supplies | 3,758 | 2,753 | ||
| Office Equipment | 115,374 | 122,895 | ||
| Trucks | 45,148 | 54,148 | ||
| Building | 0 | 150,502 | ||
| Land | 0 | 37,554 | ||
| Accounts Payable | 62,640 | 31,068 | ||
| Note payable | 0 | 88,056 | ||
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Late in December 2011, the business purchased a small office building and land for $188,056. It paid $100,000 cash toward the purchase and an $88,056 note payable was signed for the balance. Mr. Fabiano had to invest $35,000 cash in the business in exchange for stock to enable it to pay the $100,000 cash. The business also pays $3,300 cash per month for dividends.
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By comparing equity amounts from the balance sheets and using the additional information presented in this problem, prepare a calculation to show how much net income was earned by the business during 2011. (Negative amounts should be indicated by a minus sign. Omit the “$” sign in your response.) |
I NEED THE ANSWER FOR THESE THREE BLANKS