Preparing and Analyzing Closing Entries Sparrow Company had the following adjusted trial balance at December 31, 2019. Sparrow Company Adjusted Trial Balance December 31, 2019

Debit Credit
Cash $3,150
Accounts Receivable 5,650
Prepaid Insurance 4,480
Equipment 42,000
Accumulated Depreciation, Equipment $24,000
Accounts Payable 2,800
Salaries Payable 4,450
Unearned Service Revenue 3,875
Common Stock 8,000
Retained Earnings 2,255
Dividends 10,500
Service Revenue 99,800
Salaries Expense 49,400
Rent Expense 17,250
Insurance Expense 2,200
Depreciation Expense 4,950
Income Taxes Expense 5,600
Totals $145,180 $145,180

Required:
Prepare the closing entries for Sparrow at December 31, 2019.

Listed below are several transactions that took place during the first two years of operations for the law firm of pete, pete, and roy. year 1 year 2amounts billed to clients for services rendered $ 170,000 $ 220,000 cash collected from clients 160,000 190,000 cash disbursements salaries paid to employees for services rendered during the year 90,000 100,000 utilities 30,000 40,000 purchase of insurance policy 60,000 0 in addition, you learn that the company incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period. required: 1. & 3. calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.2. prepare an income statement for each year according to the accrual accounting model.