Explain how to calculate common stock, retained earnings and the entire problem

! Required information E1-4 (Static) Completing a Balance Sheet and Inferring Net Income [LO 1-2, LO 1-3] (The following information applies to the questions displayed below.) Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $49,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2020. On that date, the following financial items for the year were determined: cash on hand and in the bank, $47,500; amounts due from customers from sales of books, $26,900; equipment, $48,000; amounts owed to publishers for books purchased, $8,000; one-year notes payable to a local bank for $2,850. No dividends were declared or paid to the stockholders during the year. 1. Complete the following balance sheet at December 31, 2020. $ Assets Cash Accounts Receivable Equipment READER DIRECT Balance Sheet At December 31, 2020 Liabilities 47,500 Accounts Payable 26,900 Notes Payable 48,0 Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity $ 122,400 Total Liabilities and Stockholders' Equity 8,000 2,850 10,850 Total Assets $ 10,850