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Holmes Cleaning Service began operation on January 1, Year 1. The company experienced the following events for its first year of operations: Events Affecting Year 1: 1. Provided $160,000 of cleaning services on account. 2. Collected $120,000 cash from accounts receivable. 3. Pald salaries of $46,000 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1,300. The expense was determined using the percent of revenue method. Required a. Organize the transaction data in accounts under an accounting equation b. Prepare an income statement, a balance sheet, and a statement of cash flows for Year 1. Complete this question by entering your answers in the tabs below. Req Reg 31 Reg B2 Req B3 Organize the transaction data in accounts under an accounting equation. (tinter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank. Not all cells will require entry) HOLMES CLEANING SERVICE Horizontal Statements Model Balance Sheet Assets Equity Event Accounts Titles for Retained NRV Retained Earnings Cash Accounts Recalvable Earnings [Your Proy 1 of 11 Next > Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement, a balance sheet, and a statement of cash flows for Year 1. Complete this question by entering your answers in the tabs below. Req A Rqa B1 Reg B2 Reg B3 Prepare an income statement for Year 1. HOLMES CLEANING SERVICE Income Statement For the Year Ended December 31, Year 1 Operating expenses Total operating expenses S 0 4. Adjusted the accounts to renect managements expectations that uncollectible accounts expense would be >1,000. i ne expense was determined using the percent of revenue method. Required a. Organize the transaction date in accounts under an accounting equation b. Prepare an income statement, a balance sheet, and a statement of cash flows for Year 1. Complete this question by entering your answers in the tabs below. Reg A Req B1 Reg BP Reg B3 Prepare a balance sheet for Year 1. HOLMES CLEANING SERVICE Balance Sheet As of December 31, Year 1 Assets 0 0 $ Total assets Liabilities Stockholders' Equity Total stockholders' equity Total abilities and stockholders equity 0 0 $ 4. Adjustea une accounts to renect managements expectations that uncollectible accounts expense would be 1,500ine expense was determined using the percent of revenue method. Required a. Organize the transaction data in accounts under an accounting equation b. Prepare an income statement, a balance sheet, and a statement of cash flows for Year 1. Complete this question by entering your answers in the tabs below. Req A Reg 1 Reg B2 Req B3 Prepare a statement of cash flows for Year 1. (Cash outflows should be indicated with a minus sign.) HOLMES CLEANING SERVICE Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Not change in cash 0 Ending cash balance $ 0
