The following events apply to Montgomery Company for 2016, its first year of operation:

The following events apply to Montgomery Company for 2016, its first year of operation:


1.     Received cash of $44,000 from the issue of common stock.
2.     Performed $63,000 of services on account.
3.     Incurred $9,500 of other operating expenses on account.
4.     Paid $36,000 cash for salaries expense.
5.     Collected $42,000 of accounts receivable.
6.     Paid a $4,500 dividend to the stockholders.
7.     Performed $11,000 of services for cash.
8.     Paid $7,000 of the accounts payable.


Required
a.    Record the preceding transactions in general journal form.

b. Post the entries to T-accounts and determine the ending balance in each account.

 

c. Determine the amount of total assets at the end of 2016.

d. Determine the amount of net income for 2016.