Question

Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $51,450 cash to start the business and
received 4,200 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, $48,600; amounts due from customers from sales of books,
$28,200; property and equipment, $52,500; amounts owed to publishers for books purchased, $8,600; one-year note payable to a
local bank for $3,750. No dividends were declared or paid to the shareholders during the year.
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Required:
1. Complete the balance sheet at December 31, 2020:
solution

Answer 1

Answer:

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Answer 2

Answer:

Balance sheet for the year ended 31-December-2020 is prepared and attached.

Explanation:

1) Total of the Assets is 129300

2) Total of liabilities is 129300

Share capital, trade creditor and bonds within one year are liabilities.

property and equipment, amount due from customers and cash and bank balance are assets.