7-2bCash2 80,000 3 32,000Bal 48,000Accounts Receivable1 96,000 2 80,000Bal 16,000Allow. For Doubt. Accts 4 1,600 Bal 1,600Service Revenue 1 96,000 Bal. 96,000Salaries Expense3 32,000Bal 32,000Uncoll. Accts. Expense4 1,600Bal. 1,600c.Michelle's Accounting ServiceIncome StatementFor the Year Ended December 31, 2013Service revenue 96,000Operating expenses Salaries expense 32,000 Uncoll. Accts. Exp 1,600 Total operating expenses -33,600Net income 62,400Michelle's Accounting ServiceBalance SheetAs of December 31, 2013Assets Cash 48,000Accounts Receivable 16,000 Less: Allow for doubt acc -1,600 14,400Total assets 62,400Liabilities 0Stockholders' equity Retained earnings 62,400 Total stockholders' equity 62,400Total Liab and SE 62,400Michelle's Accounting ServiceStatement of Cash FlowsFor the Year Ended December 331, 2013Cash flows from OA: 80,000 Inflow from customers 80,000 Outflow for expenses -32,000 Net cash flow from OA 48,000Cash flows from IA 0Cash flows from FA 0Net change in cash 48,000Add: Beg cash bal 0Ending cash bal. 48,0007-5aEvent Cash A. Rec. Allow Liab Ret. Earn1 NA + NA NA +2 + - NA NA NA3 NA - - NA NA4 NA NA + NA -Event Rev Exp Net Inc Cash Flow1 + NA + NA NA2 NA NA NA + OA3 NA NA NA NA NA4 NA + - NA NAbCash2 62,000 Accounts Receivable1 68,000 2 62,000 3 500Service Revenue 1 68,000Allowance for doubtful accts3 500 4 1360Uncollectible accts expense4 13607-7aCash2 72,000 3 39,000Bal 33,000Accounts Receivable1 86,000 2 72,000Bal 14,000Service Revenue 1 86,000Allowance for doubtful accts3 500 4 1,625Bal 1,625Uncollectible accts expense4 1,625Bal 1,625 Salaries Expense3 39,000 Bal 39,000 bTyler Service COIncome StatementFor the Year Ended December 31, 2013Service Revenue 86,000Operating expenses Salaries expense 39,000 Uncoll accts exp 1,625 Total operating expenses -40,625Net income 45,375c $12,3757-8aCash2 22,000 4 24,0003 65,000Bal 63,000Accounts Receivable1 80,000 3 65,000Bal 15,000Allow for Doubt Accts 5 750Bal 750Retained Earningscl 24,750 cl 102,000Bal 77,250Service Revenue 1 80,0002 22,000Bal 102,000cl 102,000 Bal 0Salaries Expense4 24,000 Bal 24,000 cl 24,000Bal. 0 Uncoll Accts Expense5 750Bal 750 cl 750Bal 0bFAELLO INCIncome StatementFor the Year Ended December 31, 2013Service revenue 102,000Operating expenses Salaries expense 24,000 Uncoll Accts Exp 750 Total Oper Exp -24,750Net income 77,250FAELLO INCStatement of Changes in SEFor the Year Ended December 31, 2013Beg RE 0 Add: Net income 77,250 Ending RE 77,250Total SE 77,250FAELLO INCBalance SheetAs of December 31, 2013Assets Cash 63,000Accoutns rec. 15,000 Less: Allow for Doubt Accts -750 14,250Total assets 77,250Liabilities 0Stockholder's equity RE 77,250 Total SE 77,250Total liab and SE 77,250FAELLO INCStatement of Cash FlowsFor the Year Ended Decmeber 31, 2013Cash flows from OA Inflow from customers 87,000 Outflow for expenses -24,000 Net cash flow from OA 63,000Cash flows from IA 0Cash flows from FA 0Net change in cash 63,000Add: beg cash bal 0Ending cash bal 63,000Net realizable value: $14,250dCashBal 63,000 5 35,0003 15,0004 90,000Bal 133,000Accounts ReceivableBal 15,000 1 6202 95,000 4 90,000Bal 19,380Allow for Doubt Accts Bal 7506 8391 620 Bal 969Retained Earnings Bal 77,250 Service Revenue2 95,0003 15,000Bal 110,000Salaries Expense5 35,000 Bal 35,000 Uncoll Accts Expense6 839Bal 839FAELLO INCIncome StatementFor the Year Ended December 31, 2014Service revenue 110,000Operating expenses Salaries expense 35,000 Uncoll Accts Exp 839 Total Oper Exp -35,839Net income 74,161FAELLO INCStatement of Changes in SEFor the Year Ended December 31, 2014Beg RE 77,250 Add: Net income 74,161 Ending RE 151,411Total SE 151,411FAELLO INCBalance SheetAs of December 31, 2014Assets Cash 133,000Accoutns rec. 19,380 Less: Allow for Doubt Accts -969 18,411Total assets 151,411Liabilities 0Stockholder's equity RE 151,411 Total SE 151,411Total liab and SE 151,411FAELLO INCStatement of Cash FlowsFor the Year Ended Decmeber 31, 2014Cash flows from OA Inflow from customers 105,000 Outflow for expenses -35,000 Net cash flow from OA 70,000Cash flows from IA 0Cash flows from FA 0Net change in cash 70,000Add: beg cash bal 63,000Ending cash bal 133,000Net realizable value: $18,4117-21aa. $750b.$18,750c. Cash used in investing activities: $18,000d.$150e. $18,900f. Cash provided by investing activities $18,000Cash provided by operating activities $900g. $9007-18ab. Uncoll acct exp: $3,630Net realizable value: $97,3207-24aLEGG COMPANYIncome StatementFor the Year Ended December 31, 2013Sales revenue 350,000Cost of goods sold -225,000Gross profit 125,000Operating items Operating expenses 45,000 Salaries expenses 61,200 Uncoll acc exp 9,600 Total operating expenses -115,800Operating income 9,200Non-operating items Interest revenue 12,000Net income 21,200LEGG COMPANYBalance SheetAs of December 31, 2013Assets Cash 16,700Accts Receivable 92,000 Less: Allow. For doubt accts -6500 85,000Supplies 4,500Land 45,000Prepaid rent 16,000Merchandise Inventory 105,000Notes Receivable 15,000Interest Receivable 2,100Total assets 289,800Liab and SE Liabilities Unearned revenue 40,000 Accounts payable 48,000 Salaries payable 10,500 Total liabilities 98,500Stockholders' equity Common Stock 60,000 Retained earnings131,300 Total SE 191,300Total liab and SE