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.

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.

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

The accounting records of Fabiano Distribution show the following assets and liabilities as of December 31, 2010 and 2011.

Explanation / Answer

net increase = 104779 - 35000 = 69779

withdrawls = 3300 * 12 = 39600

income = 69779 - 3300 * 12= 30179

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