Required information [The following information applies to the questions displayed below.] Carlos Ramirez and Camila Garza organized New World Book Store as a corporation; each contributed $72,000 cash to start the business and received 5,900 shares of common stock. The store completed its first year of operations on December 31, 2014. On that date, the following financial items for the year were determined: December 31, 2014, cash on hand and in the bank, $70,150; December 31, 2014, amounts due from customers from sales of books, $39,500; unused portion of store and office equipment, $72,500; December 31, 2014, amounts owed to publishers for books purchased, $12.700: ono voar noto pavablo to a local bank for $2.800 with interest duo of $180 No
Required information [The following information applies to the questions displayed below.] Carlos Ramirez and Camila Garza organized New World Book Store as a corporation; each contributed $72,000 cash to start the business and received 5,900 shares of common stock. The store completed its first year of operations on December 31, 2014. On that date, the following financial items for the year were determined: December 31, 2014, cash on hand and in the bank, $70,150; December 31, 2014, amounts due from customers from sales of books, $39,500; unused portion of store and office equipment, $72,500; December 31, 2014, amounts owed to publishers for books purchased, $12.700: ono voar noto pavablo to a local bank for $2.800 with interest duo of $180 No
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
[The following information applies to the questions displayed below.]
Carlos Ramirez and Camila Garza organized New World Book Store as a corporation;
each contributed $72,000 cash to start the business and received 5,900 shares of
common stock. The store completed its first year of operations on December 31, 2014.
On that date, the following financial items for the year were determined: December 31,
2014, cash on hand and in the bank, $70,150; December 31, 2014, amounts due from
customers from sales of books, $39,500; unused portion of store and office equipment,
$72,500; December 31, 2014, amounts owed to publishers for books purchased,
$12,700; one-year note payable to a local bank for $3,800, with interest due of $180. No
dividends were declared or paid to the stockholders during the year.
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.)
=
Amount of net income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd960bb05-f8e9-458e-8dc8-ba896c5de05d%2Fea40f81f-de8a-4317-918b-1368eb528547%2Fbkb9jrc_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Carlos Ramirez and Camila Garza organized New World Book Store as a corporation;
each contributed $72,000 cash to start the business and received 5,900 shares of
common stock. The store completed its first year of operations on December 31, 2014.
On that date, the following financial items for the year were determined: December 31,
2014, cash on hand and in the bank, $70,150; December 31, 2014, amounts due from
customers from sales of books, $39,500; unused portion of store and office equipment,
$72,500; December 31, 2014, amounts owed to publishers for books purchased,
$12,700; one-year note payable to a local bank for $3,800, with interest due of $180. No
dividends were declared or paid to the stockholders during the year.
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.)
=
Amount of net income
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