Exercise 2-4A (Algo) Effect of collecting accounts receivable on the accounting equation LO 2-2, 2-4 Holloway Company started operations on January 1, Year 1. During Year 1, Holloway earned $5,800 of service revenue and collected $4,930 cash from accounts receivable. Required: Based on this information alone, determine the following for Holloway Company. (Hint Record the events in a horizontal financial statements model before satisfying the requirements.) Note: Enter any decreases to account balances with a minus sign. HOLLOWAY COMPANY Effect of Events on the Year 1 Horizontal Financial Statements Event Assets Cash Accounts Receivable Liabilities Stockholders' Equity Common Stock Retained Earnings Earned revenue Collected accounts receivable Ending balance . + 0+ 0- 0+ 0+ 0 a. The balance of the accounts receivable that would be reported on the December 31, Year 1, balance sheet. Accounts receivable b. The amount of net income that would be reported on the Year 1 income statement. Net income Pray