Terry Lloyd and Joan Lopez organized Read More Store as a corporation; each contributed $ 50,000 cash to start the business and received 4,000 shares of capital. The store completed its first year of operations on December 31, 2014. On that date, the following financial items were determined: cash on hand and in the bank, $ 48,900; amounts due from customers from sales of books, $ 25,000; unused portion of store and office equipment, $ 49,000; amounts owed to publishers for books purchased, $ 7,000; one- year note for $ 3,000, signed on January 15, 2014, and payable to a local bank. No dividends were declared or paid to the shareholders during the year.

Required:

1. Complete the following statement of financial position as at December 31, 2014.

2. What was the amount of net earnings for the year?

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Assets Liabilities Cash Trade receivables Store and office equipment Trade payables Note payable Interest payable Total liabilities 120 Shareholders' Equity Contributed capital Retained earnings 12,780 Total shareholders' equity Total liabilities and shareholders' equity Total assets