$1$

Required information

$[1-4($Static$)$ Completing a Balance Sheet and Inferring Net Income $[$LO $1\mathrm{.}2,$ LO $1-3]$

$[$The following informidion applies to the quetstions displiyed belowe$]$

Ken Houng and Kirm Sherwoed organlaed Reader Direct as a corporationc each contributed $$49\mathrm{.}000$ carih to statt the business and received $4,005$ shares of stock. The store completed fis first year of operations on Deceriber $37,2020.$ On that date the following finandal hema for the year nert defermined exth an hand ond in the bank, $$47500$ amounts doe from customers from sales of books, $$26\mathrm{.}900$; equipment, $$4\mathrm{.}8,000$; amounts ewed to publiphers for books purchased, $58,000$; ene$-$year netes payable to a local bark for $$2,850.$ No duidends were declared or paid to the stockholders ouring the year.

E$1-4($Static$)$ Part $4$

$4.$ Assuming that Reader Direct generates net income of $$3,000$ and pays dividends of $$2,000$ in $2021,$ what would be the ending Retained Earnings balance at December $34,2021?$

$\backslash$table$[[$Ending RE $=$ Beginning RE $+$ Devefende $-$ Nat Income$],[-,{?}^4,5,2\mathrm{.}000,-,5,3\mathrm{.}000]]$