Michelles Accounting Service began operation on January 1, 2014. The company experienced the following events for its first year of operations:

Events Affecting 2014:

1.Provided $96,000 of accounting services on account.

2.Collected $80,000 cash from accounts receivable.

3.Paid salaries of $32,000 for the year.

4.Adjusted the accounts to reflect managements expectations that uncollectible accounts expense would be $1,600. Required

a.Organize the transaction data in accounts under on accounting equation.

b.Prepare an income statement, a balance sheet, and a statement of cash flows for 2014.