Grimes Corporation reports the following cash transactions for the year ending December 31,2015,its first year of operation:
1)Issued common stock for $35,000
2)Borrowed $25,000 from a local bank
3)Purchased land for $40,000
4)Provided services to clients for $38,000
5)Paid operating expenses of $30,500
6)Paid $2,000 cash dividends to stockholders
Required:
a)What are the total assets for Grimes Corporation at December 31,2015?
b)Prepare an income statement for 2015.Precede the amount with a minus sign if the transaction reduces that section of the income statement.

Question

Quizplus · Accepted Answer

The Answer of Grimes Corporation reports the following cash transactions for the year ending December 31,2015,its first year of operation:
1)Issued common stock for $35,000
2)Borrowed $25,000 from a local bank
3)Purchased land for $40,000
4)Provided services to clients for $38,000
5)Paid operating expenses of $30,500
6)Paid $2,000 cash dividends to stockholders
Required:
a)What are the total assets for Grimes Corporation at December 31,2015?
b)Prepare an income statement for 2015.Precede the amount with a minus sign if the transaction reduces that section of the income statement.

Grimes Corporation Reports the Following Cash Transactions for the Year