The following events apply to Montgomery Company for Year 1, its first year of operation:

Received cash of $35,000 from the issue of common stock. Performed $54,000 of services on account. Incurred $7,700 of other operating expenses on account. Paid $27,000 cash for salaries expense. Collected $37,500 of accounts receivable. Paid a $3,600 dividend to the stockholders. Performed $10,100 of services for cash. Paid $6,100 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. & d. Determine the amount of total assets at the end of Year 1, and the amount of net income for Year 1.

No Event General Journal Debit Credit 1 35,000 Cash Common stock 35,000 B 2 54,000 Accounts receivable Service revenue 54,000 3 7,700 Other operating expense Accounts payable 7,700 D 4 27,000 Salaries expense Cash 27,000 E 5 37,500 Cash Accounts receivable 37,500 6 3,600 Cash Dividends 3,600 G 7 10,100 Cash Service revenue 10,100 H 8 6,100 Accounts payable Cash 6,100 Cash Accounts Receivable Beg. Bal Beg. Bal End. Bal End. Bal Accounts Payable Common Stock Beg. Bal Beg. Bal End. Bal End. Bal Dividends Service Revenue Beg. Bal Beg. Bal End. Bal End. Bal Salaries Expense Other Operating Expense Beg. Bal Beg. Bal End. Bal End. Bal c. Total assets d. Net income