Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $52,675 cash to start the business and received 4,300 shares. 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, $49,150; amounts due from customers from sales of books, $28,850, property and equipment, $54,750, amounts owed to publishers for books purchased, $8,900; one-year note payable to a local bank for $4,200 No dividends were declared or paid to the shareholders during the year. Required: 1. Complete the balance sheet at December 31, 2020: Total assets Assets READER DIRECT Balance Sheet At December 31, 2020 $ Total liabilities Liabilities Shareholders' equity Total shareholders equity 0 Total llabilities & shareholders' equity $ 0 0

Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $52,675 cash to start the business and received 4,300 shares. 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, $49,150; amounts due from customers from sales of books, $28,850, property and equipment, $54,750, amounts owed to publishers for books purchased, $8,900; one-year note payable to a local bank for $4,200 No dividends were declared or paid to the shareholders during the year. Required: 1. Complete the balance sheet at December 31, 2020: Total assets Assets READER DIRECT Balance Sheet At December 31, 2020 $ Total liabilities Liabilities Shareholders' equity Total shareholders equity 0 Total llabilities & shareholders' equity $ 0 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $52,675 cash to start the business and
received 4,300 shares. 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, $49,150, amounts due from customers from sales of books,
$28,850, property and equipment, $54,750, amounts owed to publishers for books purchased, $8,900; one-year note payable to a
local bank for $4,200. No dividends were declared or paid to the shareholders during the year.
Required:
1. Complete the balance sheet at December 31, 2020:
Total assets
Assets
READER DIRECT
Balance Sheet
At December 31, 2020
$
Total liabilities
Liabilities
Shareholders' equity
Total shareholders equity
0 Total llabilities & shareholders' equity
$
0
0

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