Effect of transactions on general ledger accountsAt the beginning of 2011, Paramount Compa...

Effect of transactions on general ledger accounts

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?