The following events apply to Pearson Service Co. for 2014, its first year of operation.

1. Received cash of $50,000 from the issue of common stock.

2. Performed $90,000 worth of services on account.

3. Paid $64,000 cash for salaries expense.

4. Purchased supplies for $12,000 on account.

5. Collected $78,000 of accounts receivable.

6. Paid $8,500 of the accounts payable.

7. Paid a $5,000 dividend to the stockholders.

8. Had $1,500 of supplies on hand at the end of the period.

Required

a. Record these events 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 2014.

d. Determine the amount of net income for 2014.