olmes 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 $160,000 of cleaning services on account. Collected $120,000 cash from accounts receivable. Paid salaries of $30,000 for the year. Adjusted the accounts to reflect managements expectations that uncollectible accounts expense would be $1,900. The expense was determined using the percent of revenue method. Required Organize the transaction data in accounts under an accounting equation. Prepare an income statement, a balance sheet, and a statement of cash flows for Year 1.

\begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ HOLMES CLEANING SERVICE } \\ \hline \multicolumn{2}{|c|}{ For the Year Ended December 31, Year 1 } \\ \hline Cash flows from operating activities & & \\ \hline & & \\ \hline & & \\ \hline Net cash flow from operating activities & & \\ \hline Cash flows from investing activities & & \\ \hline Cash flows from financing activities & & \\ \hline Net change in cash & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ HOLMES CLEANING SERVICE } \\ \hline \multicolumn{2}{|c|}{ Income Statement } \\ \hline For the Year Ended December 31, Year 1 \\ \hline Operating expenses & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total operating expenses & & \\ \hline \end{tabular} HOLMES CLEANING SERVICE Balance Sheet As of December 31, Year 1 \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ HOLMES CLEANING SERVICE } \\ \hline \multicolumn{7}{|c|}{ Accounting Equation for Year 1} \\ \hline \multirow{3}{*}{\begin{tabular}{l} Year 1 \\ Events \end{tabular}} & \multicolumn{5}{|c|}{ Balance Sheet } & \multirow{3}{*}{ Account Titles for Retained Earnings } \\ \hline & \multicolumn{3}{|r|}{ Assets } & \multirow[b]{2}{*}{=} & \multirow{2}{*}{\begin{tabular}{c} Equity \\ Retained \\ Earnings \end{tabular}} & \\ \hline & Cash & + & \begin{tabular}{c} Net Realizable Value of \\ Accounts Receivable \end{tabular} & & & \\ \hline 1. & & + & & = & & \\ \hline 2. & & + & & = & & \\ \hline 3. & & + & & = & & \\ \hline 4. & & + & & = & & \\ \hline Balance & & + & & = & & \\ \hline \end{tabular}