The accounting records of Fabiano Distribution show the following assets and lia

Question

The accounting records of Fabiano Distribution show the following assets and liabilities as of December 31, 2010 and 2011. December 31 2010 2011 Cash 43,989 6,764 Accounts receivable 23,878 18,720 Office supplies 3,767 2,759 Office Equipment 115,622 123,160 Trucks 45,244 54,244 Building 0 150,826 Land 0 37,638 Accounts Payable 62,775 31,135 Note payable 0 88,464 Late in December 2011, the business purchased a small office building and land for $188,464. It paid $100,000 cash toward the purchase and an $88,464 note payable was signed for the balance. Mr. Fabiano had to invest $32,000 cash in the business to enable it to pay the $100,000 cash. Mr. Fabiano withdraws $3,400 cash per month for personal use. FABIANO DISTRIBUTION Balance Sheet December 31, 2010 Assets Cash 43,989 Accounts receivable 23,878 Office Equipment 115,622 Trucks 45,244 Office Supplies 3,767 Total Assets 232,500 Liabilities Accounts payable 62,775 Owner

Explanation / Answer

Equity dec 31 2011

274 512

Equity dec 31 2010

-169 725

increase

104 787

Deduct additional

-33 000

Net increase

71 1781

withdraw

39600

Net income

111 387

Equity dec 31 2011

274 512

Equity dec 31 2010

-169 725

increase

104 787

Deduct additional

-33 000

Net increase

71 1781

withdraw

39600

Net income

111 387

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