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Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $49,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2008. On that date, the following financial items for the year were determined: December 31, 2008, cash on hand and in the bank, $47,500; December 31, 2008, amounts due from customers from sales of books, $26,900; property and equipment, $48,000; December 31, 2008, amounts owed to publishers for books purchased, $8,000; one-year note payable to a local bank for $2,850. No dividends were declared or paid to the stockholders during the year.
Complete the following balance sheet at December 31, 2009.
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