Holmes Cleaning Service began operation on January 1, 2018. The company experienced the following events for its first year of operations:

Events Affecting 2018:

1. Provided $160,000 of cleaning services on account.
2. Collected $120,000 cash from accounts receivable.
3. Paid salaries of $36,000 for the year.
4. Adjusted the accounts to reflect managements expectations that uncollectible accounts expense would be $1,800. The expense was determined using the percent of revenue method.

Required

1. Organize the transaction data in accounts under an accounting equation.
2. Prepare an income statement, a balance sheet, and a statement of cash flows for 2018.

Req A Req B1 Req B2 Req B3 Organize the transaction data in accounts under an accounting equation. (Enter any decreases to accou sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".) HOLMES CLEANING SERVICE Horizontal Statements Model Balance Sheet Equity -Retained Earnings Accounts Titles for Retained Earnings Assets Event Accounts Allowance Cash +Accounts 2018 2. Bal Req A Req B1 Req B2 Req B3 Prepare an income statement for 2018. HOLMES CLEANING SERVICE Income Statement For the Year Ended December 31, 2018 Operating expenses Total operating expenses Req A Req B1 Req B2 Req B3 Prepare a balance sheet for 2018 HOLMES CLEANING SERVICE Balance Sheet As of December 31, 2018 Assets Total assets Liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity Req A Req B1 Req B2 Req B3 Prepare a statement of cash flows for 2018. (Amounts to be ded HOLMES CLEANING SERVICE Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance