Bennett Griffin and Chula Garza organized Cole Valley Book Store as a corporation; each contributed $$72,000$ cash to start the

business and received $5,200$ shares of common stock. The store completed its first year of operations on December $31,$ current year.

On that date, the following financial items for the year were determined: December $31,$ current year, cash on hand and in the bank,

$$70,350$; December $31,$ current year, amounts due from customers from sales of books, $$39,500$; unused portion of store and office

equipment, $$79,500$; December $31,$ current year, amounts owed to publishers for books purchased, $$12,900$; one$-$year note payable to

a local bank for $$3,200.$ No dividends were declared or paid to the stockholders during the year.

Required:

Complete the following balance sheet as of the end of the current year. Some information has been given below.

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.$)$

Complete this question by entering your answers in the tabs below.

Required $1$

Complete the following balance sheet as of the end of the current year. Some information has been given below.