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Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $49,000 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, $44,500; amounts due from customers from sales of books, $27,900; equipment, $48,000; amounts owed to publishers for books purchased, $8,400; one-year notes payable to a local bank for $4,350. No dividends were declared or paid to the stockholders during the year. B. As of December 31, 2017, did most of the financing for assets come from creditors or stockholders? Creditors Stockholders

Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $49,000 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, $44,500; amounts due from customers from sales of books, $27,900; equipment, $48,000; amounts owed to publishers for books purchased, $8,400; one-year notes payable to a local bank for $4,350. No dividends were declared or paid to the stockholders during the year. B. As of December 31, 2017, did most of the financing for assets come from creditors or stockholders? Creditors Stockholders

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $49,000 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, $44,500; amounts due from customers from sales of books, $27,900; equipment, $48,000; amounts owed to publishers for books purchased, $8,400; one-year notes payable to a local bank for $4,350. No dividends were declared or paid to the stockholders during the year. 3. As of December 31, 2017, did most of the financing for assets come from creditors or stockholders? Creditors Stockholders
Transcribed Image Text:Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $49,000 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, $44,500; amounts due from customers from sales of books, $27,900; equipment, $48,000; amounts owed to publishers for books purchased, $8,400; one-year notes payable to a local bank for $4,350. No dividends were declared or paid to the stockholders during the year. 3. As of December 31, 2017, did most of the financing for assets come from creditors or stockholders? Creditors Stockholders
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