At the beginning of Year 2, the accounting records of Grace Company included the accounts and balances shown on the first row of the table below. During Year 2, the following transactions occurred:1. Received $95,000 cash for providing services to customers2. Paid salaries expense, $50,0003. Purchased land for $12,000 cash4. Paid $4,000 on note payable5. Paid operating expenses, $22,0006. Paid cash dividend, $2,500Required:a) Record the transactions in the appropriate 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. (The effects of the first event are shown below.)
alt="" style="vertical-align: 0.0px;" height="220" width="582" />b) What is the amount of total assets as of December 31, Year 2?c) What is the amount of total stockholders' equity as of December 31, Year 2?
What will be an ideal response?
a)
b) Total assets = $33,500 + $44,000 = $77,500
c) Total stockholders' equity = $33,000 + $30,500 = $63,500
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