At the beginning of Year 1, Event Services Co. had the following normal balances in its accounts:

Account                                                     Balance
Cash ..........................................................$60,000
Accounts Receivable .................................38,000
Accounts Payable ......................................24,800
Common Stock ..........................................48,000
Retained Earnings .....................................25,200

The following events apply to Event Services Co. for Year 1:
1. Provided $130,000 of services on account.
2. Incurred $6,200 of operating expenses on account.
3. Collected $112,000 of accounts receivable.
4. Paid $72,000 cash for salaries expense.
5. Paid $30,000 cash as a partial payment on accounts payable.
6. Paid a $16,000 cash dividend to the stockholders.

Required
a. Record these events in a general journal.
b. Open T-accounts and post the beginning balances and the preceding transactions to the appropriate accounts. Determine the balance of each account.
c. Show the beginning balances and the events in a horizontal statements model such as the following one:

d. Record the closing entries in the general journal and post them to the T-accounts. What is the amount of net income for the year?
e. What is the amount of change in retained earnings for the year? Is the change in retained earnings different from the amount of net income? If so, why?
f. Prepare a post-closing trial balance.

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Balance Sheet Statement of Cash Income Statement Stk. Equlty + Ret. Earn. Assets Llab. Cash Accts. Pay. + Flows + Accts. Rec. Com. Stk. Exp. Net Inc. Rev.