Nina'a accounting service began operation on January 1, 2007. The company experienced the following events for its first year of operations.
Events Affecting 2007:
1.) Provided 120,000 of accounting services on account
2.) Collected 90,000 cash from accounts receivable
3.) Paid salaries of 24,000 for the year
4.) Adjust the accounts to reflect management's expectations that uncollectible accounts expense would be 1,200
General journal entries and post general entries for T-accounts are given. The solution prepares an income statement balance, balance sheet and statement of cash flows.