Please give me the Correct answer Faello Inc. experienced the following events during the first two years ofits operations:2014:1 Provided $70,000 of services on account.2 Provided $27,000 of services and received cash.3 Collected $43,000 cash from accounts receivable.4 Paid $14,000 of salaries expense for the year.Adjusted the accounting records to reflect uncollectible accounts5 expenses for the year. Faello estimates that 7 percent of the endingaccounts receivable balance will be uncollectible.2015:1 Wrote off an uncollectible account of $670.2 Provided $90,000 of services on account.3 Provided $15,000 of services and collected cash.4 Collected $72,000 cash from accounts receivable.5 Paid $30,000 of salaries expense for the year.Adjusted the accounts to reflect uncollectible accounts expenses for the6 year. Faello estimates that 7 percent of the ending accounts receivablebalance will be uncollectible.A. ORGANIZE THE TRANSACTION DATA IN ACCOUNTS UNDER AN ACCOUNTINGEQUATION FOR 2014.b. Prepare the income statement for 2014.c. Prepare the statement of changes in stockholders' equity for 2014.d. Prepare the balance sheet for 2014.

Step 1: A. Preparation schedule showing changes in accounting equation(Assets= Liabilities + Equity)…

Answered: Faello Inc. experienced the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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