The following events apply to Montgomery Company for 2016, its first year of operation:
1. Received cash of $36,000 from the issue of common stock.
2. Performed $48,000 of services on account.
3. Incurred $6,500 of other operating expenses on account.
4. Paid $21,000 cash for salaries expense.
5. Collected $34,500 of accounts receivable.
6. Paid a $3,000 dividend to the stockholders.
7. Performed $9,500 of services for cash.
8. Paid $5,500 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. Determine the amount of total assets at the end of 2016.
d. Determine the amount of net income for 2016.