Terry Lloyd and Joan Lopez organized Read More Store as a corporation; each contributed $50,000 cash to start the business and received 4,000 shares of common stock. The store completed its first year of operations on December 3 1 , 2003. On that date, the following financial items for the year were determined: December 31, 2003, cash on hand and in the bank, $48,900; December 31, 2003, amounts due from customers from sales of books, $26,000; unused portion of store and office equipment,

$48,000; December 3 1 , 2003, amounts owed to publishers for books purchased, $8,000; one-year note payable to a local bank for $2,000. No dividends were declared or paid to the stockholders during the year.

Required: 1. Complete the following balance sheet as of the end of 2003. 2. What was the amount of net income for the year?

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Assets $ Accounts payable Liabilities Note payable Interest payable Total liabilities Cash Accounts receivable Store and office equipment Total assets $ $ 120 $ Stockholders' Equity Contributed capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 12,780