Each contributed \($50,000\) cash to start the business and received 4,000 shares of capital. The store completed its first year of operations on December 31, 2011. On that date, the following financial items were determined: cash on hand and in, the bank, \($48,900;\) amounts due from customers from sales of books, \($25,000;\) unused portion of store and office equipment, \($49,000;\) amounts owed to publishers for books purchased, \($7,000;\) one-year note for \($3,000,\) signed on January 15, 2011, and payable to a local bank. No dividends were declared or paid to the shareholders during the year.

Required:
1 Complete the following statement of financial position as at December 31, 2011.
2 What was the amount of profit for the year?

Transcribed Image Text:

Cashi Trade receivables Store and office equipment Assets Liabilities Trace payables $ Note payable Interest payable 120 Total liabilities Shareholders' Equily Share capital $ Retained earnings 12,780 Tota shareholders' equity Total liabilities and Total assets S shareholders' equity