Posey Service Co. experienced the following transactions for 201

Posey Service Co. experienced the following transactions for 2011, its first year of operations:

1. Provided $72,000 of services on account.

2. Collected $56,000 cash from accounts receivable.

3. Paid $30,000 of salaries expense for the year.

4. Posey adjusted the accounts using the following information from an accounts receivable aging schedule.


Posey Service Co. experienced the following transactions for 201


Required
a. Organize the information in accounts under an accounting equation.
b. Prepare the income statement for Posey Service Co. for 2011.
c. What is the net realizable value of the accounts receivable at December 31,2011?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...

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