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Required Information The following information applies to the questions displayed below) Ken Young and Kim Sherwood organized Reader Direct as a corporation, each contributed $58,000

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Required Information The following information applies to the questions displayed below) Ken Young and Kim Sherwood organized Reader Direct as a corporation, each contributed $58,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2017 On that date, the following financial items for the year were determined: cash on hand and in the bank, $53,500. amounts due from customers from sales of books, $28,800, equipment, $57000: amounts owed to publishers for books purchased $9,300; one year notes payable to a local bank for $5.700. No dividends were declared or paid to the stockholders during the year. Required: 1. Complete the following balance sheet at December 31, 2017 Answer is not complete. READER DIRECT Balance Sheet Cash 58.000 At December 31, 2017 Liabilities 53,500 Accounts Payable 28,800 Notes Payable 57.000 Total Liabilities Stockholders' Equity Common Stock 5.700 831700 Retained Earnings 3.300 Total Stockholders Equity Total Labises and Stockholders al Ass 130,300 72.000 Required Information [The following information applies to the questions displayed below) Ken Young and Kim Sherwood organized Reader Direct as a corporation each contributed $58,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2017 On that date, the following financial items for the year were determined: cash on hand and in the bank. $53,500, amounts due from customers from sales of books, $28,800, equipment. $57000: amounts owed to publishers for books purchased $9,300; one-year notes payable to a local bank for $5.700. No dividends were declared or paid to the stockholders during the year. 2. Using the retained earnings equation and an opening balance of $0.compute the amount of net income for the year ended December 31, 2017 Answer is not complete. Net Income = Ending RE + Dividends - Beginning RE 10 11 of 13 Next > Required Information [The following information applies to the questions displayed below) Ken Young and Kim Sherwood organized Reader Direct as a corporation each contributed $58,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2017 On that date, the following financial items for the year were determined cash on hand and in the bank, 553,500, amounts due from customers from sales of books, $28.800, equipment. $57000, amounts owed to publishers for books purchased $9,300; one year notes payable to a local bank for $5.700. No dividends were declared or paid to the stockholders during the year. 4. Assuming that Reader Direct generates net income of $7.500 and pays dividends of $3,900 in 2018, what would be the ending Retained Earnings balance at December 31, 2018? Ending RE - Beginning RE .Net Income - Dividends Begin

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