Required information

[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 $220,000 of cleaning services on account.
2. Collected $165,000 cash from accounts receivable.
3. Paid salaries of $44,000 for the year.
4. Adjusted the accounts to reflect managements expectations that uncollectible accounts expense would be $1,700. The expense was determined using the percent of revenue method.

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.) HOLMES CLEANING SERVICE Income Statement For the Year Ended December 31, Year 1 Service revenue Operating expenses Salaries expense Allowance for doubtful accounts Total operating expenses Net income HOLMES CLEANING SERVICE Balance Sheet As of December 31, Year 1 Assets 0 Total assets Liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity HOLMES CLEANING SERVICE Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance 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.) HOLMES CLEANING SERVICE Income Statement For the Year Ended December 31, Year 1 Service revenue Operating expenses Salaries expense Allowance for doubtful accounts Total operating expenses Net income HOLMES CLEANING SERVICE Balance Sheet As of December 31, Year 1 Assets 0 Total assets Liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity HOLMES CLEANING SERVICE Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance