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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 $170,000 of accounting services on account.
2.	Collected $127,500 cash from accounts receivable.
3.	Paid salaries of $42,000 for the year.
4.	Adjusted the accounts to reflect managements expectations that uncollectible accounts expense would be $1,600.

10.

value: 10.00 points

Required information

Required
a.	Organize the transaction data in accounts under on accounting equation. (Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".)

References

WorksheetDifficulty: 2 MediumLearning Objective: 05-01 Explain how the allowance method of accounting for uncollectible accounts affects financial statements.

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11.

value: 10.00 points

Required information

b-1.	Prepare an income statement for 2014.

b-2.	Prepare a balance sheet for 2014.

b-3.	Prepare a statement of cash flows for 2014. (Amounts to be deducted should be indicated with a minus sign.)