Journal entry worksheet

• A- Provided $130,000 of cleaning services on account.
• B- Collected $97,500 cash from accounts receivable.
• C- Paid salaries of $44,000 for the year.
• D-Adjusted the accounts to reflect managements expectations that uncollectible accounts expense would be $2,000. The expense was determined using the percent of revenue method.
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c. Prepare an income statement, balance sheet, and statement of cash flows for Year 1. (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign.)

Exercise 7-2A Accounting for uncollectible accounts: allowance method LO 7-1 [The following information applies to the questions displayed below.] 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 $130,000 of cleaning services on account. 2. Collected $97,500 cash from accounts receivable. 3. Paid salaries of $44,000 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $2,000. The expense was determined using the percent of revenue method. Exercise 7-2A Part a Required . Prepare general journal entries for the above events. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet B D > Provided $130,000 of cleaning services on account. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Required information Exercise 7-2A Accounting for uncollectible accounts: allowance method LO 7-1 (The following information applies to the questions displayed below.) 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 $130,000 of cleaning services on account. 2. Collected $97,500 cash from accounts receivable. 3. Paid salaries of $44,000 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $2.000. The expense was determined using the percent of revenue method. Exercise 7-2A Part b b. Post the general journal entries to T-accounts. Cash Service Revenue Beg. Bal. Beg. Bal. End. Bal. End. Bal. Accounts Receivable Salaries Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Allowance for Doubtful Accounts Uncollectible Acctounts Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. HOLMES CLEANING SERVICE Income Statement For the Year Ended December 31, Year 1 Operating expenses Total operating expenses 0 0 $ HOLMES CLEANING SERVICE Balance Sheet As of December 31, Year 1 Assets 0 0 $ Total assets Liabilities Stockholders' equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 HOLMES CLEANING SERVICE Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow 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 $ 0