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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

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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 $160,000 of cleaning services on account 2. Collected $120,000 cash from accounts receivable. 3. Pald salaties of $32,000 for the year 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1,400. The expense was determined using the percent of revenue method Required o. 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. Req Reg 31 Reg B2 Reg B3 26:02 DOK Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a min Not all cells require input.) Balance Sheet Assets Liabilities Event Equity NRV Account Titles for Retained Earnings Cash Accounts Retained Receivable Earnings Year 1 1 160.000 160,000 Service revenue 2 120,000+ (120,000) 3 (32 000) (32,000) Salaries expenso (1,400) 1,400 (1.400) uncollectible accounts expense Bal 88.000 38.000 1,400 - 120,000 ins . rences 4 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 ho Req B1 Req B2 Req B3 Prepare a balance sheet for Year 1. 3:39 HOLMES CLEANING SERVICE Balance Sheet As of December 31, Year 1 Assets 0 Total assets 0 Liabilities Stockholders' Equity Total stockholders' equity Total liabdities and stockholders' equity 0 Req A Reg B1 Req B2 Req B3 Prepare a statement of cash flows for Year 1. (Amounts to be deducted should be indicated with a min HOLMES CLEANING SERVICE Statement of Cash Flows For the Year Ended December 31, Year 1 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 0

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