(Solved): 2 and 4 please Ken Young and Kim Sherwood organized Reader Direct as a corporation, each contribute ...

Ken Young and Kim Sherwood organized Reader Direct as a corporation, each contributed \( \$ 56,350 \) cash to start the business and recelved \( 4.600 \) shares. The store completed its first year of operations on December 31,2020 . On that date, the following financial items for the year were determinec cosh on hand and in the bank, \( \$ 50,800 \), amounts due from customers from saies of books, \( \$ 30,800 \); property and equipment, \( \$ 61,500 \); amounts owed to publishers for books purchased, \( \$ 9,800 \), one-year note payable to a local bank for \( \$ 5,550 \) No dividends were deciared or paid to the shareholders during the year Required: 1. Complete the balance sheet at December 31, 2020: 2. Using the retained earnings equation and an opening balance of \( \$ 0 \), work backward to compute the amount of net income for the year that ended December 31, 2020. 4. Assuming that Reader Direct generates net income of \( \$ 4,050 \) and pays dividends of \( \$ 2,300 \) in 2021 , what would be the company's ending Retained Earnings balance at December 31, 2021?