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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 $180,000 of cleaning services on account. 2 Collected $135,000 cash from accounts receivable 3. Paid salaries of $26.000 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 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. ROGA Req B1 Roq 82 Red 13 Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Eamings, leave the cell blank. Not all cells will require entry) HOLMES CLEANING SERVICE Horizontal Statements Model Balance Sheet Assets Equity Accounts Titles for Retained NRV Accounts Retained Earnings Racolvable Earnings Event Cash Yeart 1 2 3 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 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 0 0 $ Total assets Liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity $ Req A Req B1 Req B2 Red B3 - Prepare a statement of cash flows for Year 1. (Cash outflows should be indica HOLMES CLEANING SERVICE Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash 0 Ending cash balance $

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