Timothy Jean and Kyle Smith organized TJ DVDs as a corporation; each contributed $71,900 cash to start the business and received 5,000 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, $69,350; December 31, current year, amounts due from customers from sales of DVDs, $43,000; unused portion of store and office equipment, $75,500; December 31, current year, amounts owed to publishers for DVDs purchased, $12,400; one-year note payable to a local bank for $3,400. No dividends were declared or paid to the stockholders during the year.

Required:

1. Complete the following balance sheet as of the end of the current year. Some information has been given below.
2. 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.)

Please see below:

   

Cash Accounts receivable Store and office equipment Total assets Assets $ Balance Sheet 0 Accounts payable Note payable Interest payable Total liabilities Common stock Retained earnings Liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity S S S 150 150 28,100 28,100 28,250