At the Beginning of Year 2, Grace Company's Accounting Records

Essay

At the beginning of Year 2, Grace Company's accounting records had the general ledger accounts and balances shown in the table below. During Year 2, the following transactions occurred:Received $95,000 cash for providing services to customersPaid salaries expense, $50,000Purchased land for $12,000 cashPaid $4,000 on note payablePaid operating expenses, $22,000Paid cash dividend, $2,500Required:Record the transactions in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the retained earnings column. Enter 0 for items not affected. Provide appropriate titles for these accounts in the last column of the table.