Accounting

Problem: Module 2 Textbook Problem 1 Learning Objective: 2-2 Use the percent of revenue method to account for uncollectible accounts expense 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 $210,000 of cleaning services on account. 2. Collected $157,500 cash from accounts receivable. 3. Paid salaries of $40,000 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1,500. 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. Organize the transaction data in accounts under an accounting equation. (Enter 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.) Complete this question by entering your answers in the tabs below. Prepare an income statement for Year 1. Complete this question by entering your answers in the tabs below. Prepare a balance sheet for Year 1 . Complete this question by entering your answers in the tabs below. repare a statement of cash flows for Year 1. (Cash outflows should be indicated with a minus sign.)