At the beginning of 2011, Paramount Company's accounting records had the following general ledger accounts and balances.

Paramount completed the following transactions during 2011:
1. Purchased land for \(\$ 12,000\) cash.
2. Acquired \(\$ 20,000\) cash from the issue of common stock.
3. Received \(\$ 50,000\) cash for providing services to customers.
4. Paid cash operating expenses of \(\$ 42,000\).
5. Paid \(\$ 20,000\) cash on notes payable.
6. Paid a \(\$ 2,000\) cash dividend to the stockholders.
7. Determined that the market value of the land is \(\$ 75,000\).

Required

a. Record the transactions in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table.

b. Determine the amount of net income for the 2011 period.

c. What is the amount of total assets at the end of 2011 ? What is the amount of net assets at the end of 2011 ?

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PARAMOUNT COMPANY Accounting Equation Acct. Titles Event Assets Liabilities + Stockholders' Equity for RE Notes Common Retained Cash Land Payable Stock Earnings Balance 1/1/2011 20,000 50,000 35,000 25,000 10,000