Nina’s Accounting Service began operation on January 1,2007. The company experienced the following events for its first year of operations.

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. Adjusted the accounts to reflect management’s expectations that uncollectible accounts expense would be \($1,200\) .

Required:

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

b. Prepare an income statement, balance sheet, and statement of cash flows for 2007.