E1.4 (Algo) Completing a Balance Sheet and Inferring Net Income [LO 1-2, LO 1-3] [The...
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E1.4 (Algo) Completing a Balance Sheet and Inferring Net Income [LO 1-2, LO 1-3] [The following information applies to the questions displayed below] Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $48.000 cash to start the business and received 4,000 shares of stock. 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, $43,500; amounts due from customers from sales of books, $27,800; equipment, $47,000; amounts owed to publishers for books purchased, $8,300; one-year notes payable to a local bank for $4,200. No dividends were declared or paid to the stockholders during the year. 1-4 (Algo) Part 2 Using the retained earnings equation and an opening balance of \$o, work backwards to compute the amount of net income for the year ended December 31, 2020
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