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 $1$:

Provided $$200,000$ of cleaning services on account.

Collected $$150,000$ cash from accounts receivable.

Paid salaries of $$40,000$ for the year.

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 $1.$

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