1. John Smith and Lynn Jones organized Smith and Jones Fitness as a corporation; each contributed $50,000 cash to start the business and received 5,000 shares of common stock. The store completed its rst year of operations on December 31, Year 1. On that date, the following nancial items for the year were determined: cash on hand and in the bank , $55,400; amounts due from customers from sales of books, $27,000; unused portion of store and ofce equipment, $80,000; amounts awed to publishers for books purchased, $12,000' on-year note payable to a local bank for $3,000; interest payable on bank note of $430; and a retained earnings balance after recording all transactions of $46,970. No dividends were declared or paid to the stockholders during the year. Required: a. Complete the balance sheet as of December 31, Year 1. _ Accounts payable _ Accounts receivable _ Note payable _ - __ _ Stockholders' Equity _ Retained earnings _ - Total stockholders' equity - Total liabilities and stockholder's equity Total Assets b. What was the amount of net income for the year? (Hint: Use the retained earnings equation [Beginning Retained Earnings + Net Income Dividends = Ending Retained Earnings] to solve for net income.)