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5 Required information (The following information applies to the questions displayed below.) Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed

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5 Required information (The following information applies to the questions displayed below.) Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $44,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2017. On that date, the following financial items for the year were determined cash on hand and in the bank, $39,500; amounts due from customers from sales of books, $27,400; equipment. $43,000, amounts owed to publishers for books purchased, $7,900; one-year notes payable to a local bank for $3,600. No dividends were declared or paid to the stockholders during the year. Required: 1. Complete the following balance sheet at December 31, 2017. Assets Cash Accounts Receivable Equipment READER DIRECT Balance Sheet At December 31, 2017 Liabilities Accounts Payable Notes Payable Total Liabilities Stockholders' Equity Common Stock Retnined Earnings 10,400 S atv A 23 Required: art 1 of 4 1. Complete the following balance sheet at December 31, 2017. 4 Ints Hint Assets Cash Accounts Receivable Equipment READER DIRECT Balance Sheet At December 31, 2017 Llabilities Accounts Payable Notes Payable Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 10,400 Total Assets w THE 23 Required information {The following information applies to the questions displayed below.) ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $44,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2017. On that date, the following financial items for the year were determined: cash on hand and in the bank, $39,500; amounts due from customers from sales of books, $27,400; equipment, $43,000; amounts owed to publishers for books purchased, $7,900; one-year notes payable to a local bank for $3,600. No dividends were declared or paid to the stockholders during the year. 2. Using the retained earnings equation and an opening balance of $0, compute the amount of net income for the year ended December 31, 2017 VW Customize Your Map Homework Saved He 3 Required information [The following information applies to the questions displayed below.) Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $44,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2017. On that date, the following financial items for the year were determined: cash on hand and in the bank, $39,500; amounts due from customers from sales of books, $27,400, equipment, $43,000; amounts owed to publishers for books purchased, $7,900; one-year notes payable to a local bank for $3,600. No dividends were declared or paid to the stockholders during the year. 3. As of December 31, 2017, did most of the financing for assets come from creditors or stockholders? Creditors Stockholders mework Help Required information [The following information applies to the questions displayed below.) Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $44,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2017. On that date, the following financial items for the year were determined: cash on hand and in the bank. $39,500; amounts due from customers from sales of books. $27,400; equipment, $43,000; amounts owed to publishers for books purchased, $7,900; one-year notes payable to a local bank for $3,600. No dividends were declared or paid to the stockholders during the year. 4. Assuming that Reader Direct generates net income of $5,500 and pays dividends of $2,500 in 2018, what would be the ending Retained Earnings balance at December 31, 2018? 9

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