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 stockholdersRequired:a) What are the total assets for Grimes Corporation at December 31, Year 1?b) Prepare an income statement for Year 1.
What will be an ideal response?
a) Total assets = $35,000 + $25,000 + $38,000 ? $30,500 ? $2,000 = $65,500
b) 
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