Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $42,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2014. On that date, the following financial items for the year were determined: cash on hand and in the bank, $37,500; amounts due from customers from sales of books, $27,200; equipment, $41,000; amounts owed to publishers for books purchased, $7,700; one-year note payable to a local bank for $3,300. No dividends were declared or paid to the stockholders during the year.

Required: 1.Complete the following balance sheet at December 31, 2014. READER DIRECT Balance Sheet At December 31, 2014 Assets Liabilities Cash Accounts Receivable Equipment $ 37,500 Accounts Payable 27,200Note Payable 41,000 Total Liabilities $ 7,700 3,300 11,000 Stockholders' Equity Common Stock 10,700 10,700 $105,700 Total Liabilities and Stockholders' EquityS 21,700 Retained Earnings Total Stockholders' Equity Total Assets