Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $62,475 cash to start the business and received 5,100 shares. 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, $53,550; amounts due from customers from sales of books, $34,050; property and equipment, $72,750; amounts owed to publishers for books purchased, $11,300; one-year note payable to a local bank for $7,800. No dividends were declared or paid to the shareholders during the year. Required: 1. Complete the balance sheet at December 31, 2017:

Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $62,475 cash to start the business and received 5,100 shares. 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, $53,550; amounts due from customers from sales of books, $34,050; property and equipment, $72,750; amounts owed to publishers for books purchased, $11,300; one-year note payable to a local bank for $7,800. No dividends were declared or paid to the shareholders during the year. Required: 1. Complete the balance sheet at December 31, 2017:

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter22: S Corporations

Section: Chapter Questions

Problem 36P

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