terry lopez organized read more store as a sole proprietorship contributing 100 000 4374791

Terry Lopez organized Read More Store as a sole proprietorship, contributing $100,000 cash to start the business. The store completed its first year of operations on December 31, 2010. On that date, the following financial items for the year were determined: Cash on hand and in the bank …………………………………………………. $ 48,900 Amounts due from customers from sales of books ……………………………… 26,000 Equipment ……………………………………………………………………….. 48,000 Amounts owed to publishers for books purchased ……………………………….. 8,000 One-year note payable to a local bank ……………………………………………. 2,120 Terry Lopez, Capital account balance ………………………………………….. 112,780 The owner made no withdrawals during the year. Required: 1. Using typical account titles, prepare a balance sheet as of the end of 2010. 2. Using the statement of owner’s equity equation and an opening balance of $0, compute the amount of net income for the year. View Solution:
Terry Lopez organized Read More Store as a sole proprietorship

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