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 $180,000 of cleaning services on account. 2. Collected $135,000 cash from accounts receivable. 3. Paid salaries of $46,000 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1,900. 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 Req B2 Req B3 Organize the transaction data in accounts under an accounting equation. Note: Enter any decreases to account balances with a minus sign. Not all cells require input. Balance Sheet Assets Equity Event Account Titles for Retained Earnings Cash NRV Accounts = Liabilities Retained Earnings Receivable Year 1 1. + 11 2. + = 3. + = 4. + Balance 0+ = 0 = + + + + 0+ < Req A 0 Req B1 > 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 Req B2 Req B3 Prepare an income statement for Year 1. HOLMES CLEANING SERVICE Income Statement For the Year Ended December 31, Year 1 Service revenue Operating expenses Salaries expense Uncollectible accounts expense Total operating expenses 0 69 $ 0 Req A Req B1 Req B2 Req B3 Prepare a balance sheet for Year 1. HOLMES CLEANING SERVICE Balance Sheet As of December 31, Year 1 Assets Cash Total assets Liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity 0 $ 0 69 0 0 Prepare a statement of cash flows for Year 1. Note: 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 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance SA $ 69 $ 0 0 0