Carlos Ramirez and Camila Garza organized New World Book Store as a corporation; each contributed $71,900 cash to start the business and received 5,700 shares of common stock. The store completed its first year of operations on December 31, 2014. On that date, the following financial items for the year were determined: December 31, 2014, cash on hand and in the bank, $69,150; December 31, 2014, amounts due from customers from sales of books, $39,000; unused portion of store and office equipment, $79,500; December 31, 2014, amounts owed to publishers for books purchased, $12,200; one-year note payable to a local bank for $3,700, with interest due of $180. No dividends were declared or paid to the stockholders during the year. Prepare the balance sheet as of the end of 2014.

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Braxton Lambert

Business

22 March, 13:55

Carlos Ramirez and Camila Garza organized New World Book Store as a corporation; each contributed $71,900 cash to start the business and received 5,700 shares of common stock. The store completed its first year of operations on December 31, 2014. On that date, the following financial items for the year were determined: December 31, 2014, cash on hand and in the bank, $69,150; December 31, 2014, amounts due from customers from sales of books, $39,000; unused portion of store and office equipment, $79,500; December 31, 2014, amounts owed to publishers for books purchased, $12,200; one-year note payable to a local bank for $3,700, with interest due of $180. No dividends were declared or paid to the stockholders during the year. Prepare the balance sheet as of the end of 2014.

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Birdie · Answer 1

New World Book Shore

Balance Sheet as at December 31, 2014

Assets $ $

Cash & Bank 69,150

Debtors 39,000

Stocks 79,500

187,650

Liabilities

Creditors 12,200

Notes Payable 3,880

16,080

Common Stock 142,000

Retained earnings 29,570

187,650

Explanation:

Common stock = ($71,000*2) = $142,000.

Share holdings=11,400 common Shares.

Retained earnings=Total Assets-common stock-Liabilities

Retained earnings=$187,650-$158,080=$29,570.