The following events apply to Pearson Service Co. for Year 1, its first year of operation:

Received cash of $63,000 from the issue of common stock.

Performed $122,500 worth of services on account.

Paid $83,500 cash for salaries expense.

Purchased supplies for $18,500 on account.

Collected $97,500 of accounts receivable.

Paid $13,700 of the accounts payable.

Paid a $6,300 dividend to the stockholders.

Had $2,150 of supplies on hand at the end of the period.

Required

Record these events in general journal form.

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

Determine the amount of total assets at the end of Year 1.

Determine the amount of net income for Year 1.