Holloway Company started operations on January $1,$ Year $1.$ During Year $1,$ Holloway

earned $$9,300$ of service revenue and collected $$7,905$ 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.

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.