enoVO x McGrawHill Campusx CHT C eztomheducationcomhmtpx Ap

enoVO x McGraw-Hill Campusx CHT C | ezto.mheducation.com/hm.tpx Apps” HP Connected , Wayne Rooney. Ma G Google connect ACCT 203-SPRING 2018: ACCT 203-09 1:40pm ACCOUNTING CH1 Questions 4-7 (of 15) The following information applies to the questions disployed below as a corporation, each contributed $45,000 cash to Ken Young and Kim Sherwood organized Reader Direct start the business December 31, 2014 On that date, the following financiol items for and in the bank, $40.500, amounts owed to publishers for books purchased. $8.000, one-year note pe No dividends were declared or paid to the stockholders during the year and received 4000 shares of stock. The store completed its first year of operations on the year were determined. cash on hand amounts due from customers from sales of books, $27,500, equipment, $44,000 yable to a local bank for $3.750 4, 0.66 points Required: 1.Complete the following balance sheet at December 31, 2014 READER DIRECT Balance Sheet At December 31, 2014 Assets Liabilities

Solution

Solution: READER DIRECT Balance Sheet At December 31, 2014 Assets Liabilities Cash 40,500 Accounts Payable 8000 Accounts Receivable 27,500 Notes Payable 3,750 Property and Equipment 44,000 Total Liabilities 11,750 Stockholder\'s Equity Contributed Capital 90,000 Retained Earnings 10,250 Total Stockholder\'s Equity Total Assets 112,000 Total Liabilities and Stockholder\'s Equity 112,000 Working Notes: READER DIRECT Balance Sheet At December 31, 2014 Assets Liabilities Cash 40,500 Accounts Payable 8000 Accounts Receivable 27,500 Notes Payable 3,750 Property and Equipment 44,000 Total Liabilities 11,750 Stockholder\'s Equity Contributed Capital 90,000 Retained Earnings (see notes) 10,250 (balancing figure) Total Stockholder\'s Equity Total Assets 112,000 Total Liabilities and Stockholder\'s Equity 112,000 Notes: Contributed Capital 90,000 Since the each of them had contributed 45,000 total contributed becomes 90,000 Since total assets = Total liabilities + Stockholders Equity retained earnings is calculated using above relation total assets = total liabilities + Contributed capital + retained Earnings 112,000 = 11,750 + 90,000 + Retained Earnings Retained Earnings = 112,000 - 101,750 = $10,250 Please feel free to ask if anything about above solution in comment section of the question.