Nina’s Accounting Service began operation on January 1, 2012. The company experienced the following events for its first year of operations.

Events Affecting 2012:

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, a balance sheet, and a statement of cash flows for 2012.