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Events Affecting Year 1: 1. Provided $120,000 of cleaning services on account. 2. Collected $90,000 cash from accounts receivable, 3. Pald salaries of $48,000 for

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Events Affecting Year 1: 1. Provided $120,000 of cleaning services on account. 2. Collected $90,000 cash from accounts receivable, 3. Pald salaries of $48,000 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1,600. 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 A Req B1 Reg B2 Req B3 Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Not all cells require input.) Event Balance Sheet Assets Liabilities NRV Accounts Receivable Equity Retained Earnings Account Titles for Retained Earnings Cash Year 1 1 2. 3 4. Bal 01 + 0 Req A Req B1 Req B2 Req 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 0 $ 0 Req A Req B1 Req B2 Req B3 Prepare a balance sheet for Year 1. S HOLMES CLEANING SERVICE Balance Sheet As of December 31, Year 1 Assets 0 Total assets $ 0 Liabilities Stockholders' Equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ $ 0 Req A Req B1 Reg B2 Req B3 Prepare a statement of cash flows for Year 1. (Amounts to be deducted 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 Net change in cash Ending cash balance

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