Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $51,450 cash to start the business and received 4,200 shares. 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. $48,600; amounts due from customers from sales of books.

$28.200; property and equipment, $52,500; amounts owed to publishers for books purchased, $8,600; one-year note payable to a local bank for $3,750. No dividends were declared or paid to the shareholders during the year.

Required:

1. Complete the balance sheet at ecember 31, 2020:

Assets

READER DIRECT

Balance Sheet

At December 31, 2020

18.600

Liabilities

Cash

Shareholders equity

AC Clear