In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification

In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank. Current assets Long-term investments Plant assets Intangible assets Current liabilities Long-term liabilities Equity 1. Commissions earned 2. Interest receivable 3. Long-term investment in stock 4. Prepaid insurance 5. Machinery 6. Notes payable (due in 15 years) 7. Copyrights 8. Current portion of long-term note payable 9. Accumulated depreciation—Trucks 10 Office equipment 11. Rent receivable 12. Salaries payable 13. Income taxes payable 14. Common stock 15. Office supplies 16. Interest payable 17. Rent revenue 18. Notes receivable (due in 120 days) 19. Land (used in operations) 20. Depreciation expense—Trucks

Carlos Ramirez and Camila Garza organized New World Book Store as a corporation

Carlos Ramirez and Camila Garza organized New World Book Store as a corporation; each contributed $71,900 cash to start the business and received 5,900 shares of common stock. The store completed its first year of operations on December 31, current year. On that date, the following financial items for the year were determined: December 31, current year, cash on hand and in the bank, $70,050; December 31, current year, amounts due from customers from sales of books, $43,000; unused portion of store and office equipment, $79,500; December 31, current year, amounts owed to publishers for books purchased, $13,800; one-year note payable to a local bank for $3,500, with interest due of $210. No dividends were declared or paid to the stockholders during the year.

Required:

1. Complete the following balance sheet as of the end of current year. Some information has been given below.

2. What was the amount of net income for the year? (Hint: Use the retained earnings equation [Beginning Retained Earnings + Net Income − Dividends = Ending Retained Earnings] to solve for net income.)

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