Required information [The following information applies to the questions displayed below.] Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $40,000 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, $35,500; amounts due from customers from sales of books, $27,000; equipment, $39,000; amounts owed to publishers for books purchased, $7,500; one-year notes payable to a local bank for $3,000. No dividends were declared or paid to the stockholders during the year. Answer is complete but not entirely correct. READER DIRECT Balance Sheet At December 31, 2020 Assets Liabilities Cash $ 35,500 Accounts Payable $ 7,500 Accounts Receivable 27,000 Notes Payable 3,000 Equipment 39,000 Total Liabilities 10,500 Stockholders' Equity Common Stock 4,000 Retained Earnings 11,000 Total Stockholders' Equity 15,000 Total Assets $ 101,500 Total Liabilities and Stockholders' Equity $25,500