Gold’s Carpet Cleaning began operation on January 1, 2012. The company experienced the following events for its first year of operations.

1. Provided $150,000 of cleaning services on account.

2. Collected $115,000 cash from accounts receivable.

3. Paid salaries of $42,000 for the year.

4. Adjusted the accounts to reflect management’s expectations that uncollectible accounts expense would be $2,300.

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 2012.