Holmes Cleaning Service began operation on January $1,$ Year $1.$ The company experlenced the following events for its first year of

operations:

Events Affecting Year $1$:

Provided $$180,000$ of cleaning services on account.

Collected $$135,000$ cash from accounts recelvable.

Pald salarles of $$30,000$ for the year.

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.

Req B$1$

Req B$2$

Req B$3$

Prepare an income statement for Year $1.$

HOLMES CLEANING SERVICE

Income Statement

For the Year Ended December $31,$ Year $1$