Grimes Corporation Reports the Following Cash Transactions for the Year

Essay

Grimes Corporation reports the following cash transactions for the year ending December 31, Year 1, its first year of operation:Issued common stock for $35,000 cashBorrowed $25,000 from a local bankPurchased land for $40,000 cashProvided services to clients for $38,000 cashPaid operating expenses of $30,500Paid $2,000 cash dividends to stockholdersRequired:What are the total assets for Grimes Corporation at December 31, Year 1?Prepare an income statement for Year 1.