Sandy’s Accounting Service began operation on January 1, 2016. The company experienced the following events for its first year of operations:

Events Affecting 2016:

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 management’s expectations that uncollectible accounts expense would be $1,600.

Required

a. Prepare general journal entries for the above events.

b. Post the general journal entries to T-accounts.

c. Prepare an income statement, balance sheet, and statement of cash flows for 2016.