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:1)Issued common stock for $35,0002)Borrowed $25,000 from a local bank3)Purchased land for $40,0004)Provided services to clients for $38,0005)Paid operating expenses of $30,5006)Paid $2,000 cash dividends to stockholders
Required:a)What are the total assets for Grimes Corporation at December 31, Year 1?b)Prepare an income statement for Year 1.