At the Beginning of 2016,Grace Company's Accounting Records Had the General

question 28

Essay

At the beginning of 2016,Grace Company's accounting records had the general ledger accounts and balances shown in the table below.During 2016,the following transactions occurred:
1.Received $95,000 cash for providing services to customers
2.Paid salaries expense,$50,000
3.Purchased land for $12,000 cash
4.Paid $4,000 on note payable
5.Paid operating expenses,$22,000
6.Paid cash dividend,$2,500
Required:
a)Record the transactions in the appropriate general ledger accounts.Record the amounts of revenue,expense,and dividends in the retained earnings column.Precede the amount with a minus sign if the transaction reduces that section of the equation.Enter 0 for items not affected.
Provide appropriate titles for these accounts in the last column of the table.

b)What is the amount of total assets as of December 31,2016?
c)What is the amount of total stockholders' equity as of December 31,2016?

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Definitions:

Court

An institution established to administer justice through the interpretation of laws and the adjudication of legal disputes.

Writ of Mandamus

A court order mandating that a public agency or governmental body perform an act required by law when it has neglected or refused to do so.

Writ of Certiorari

A court order requesting the lower court to deliver its record in a case so that the higher court may review it.

Building Permit

Official authorization issued by a local government or regulatory authority to construct, alter, or demolish a building or structure.