[The following information applies to the questions displayed below.]

Holmes Cleaning Service began operation on January 1, 2016. The company experienced the following events for its first year of operations:

Events Affecting 2016:

1.

Provided $180,000 of cleaning services on account.

2.

Collected $135,000 cash from accounts receivable.

3.

Paid salaries of $32,000 for the year.

4.

Adjusted the accounts to reflect managements expectations that uncollectible accounts expense would be $1,400. The expense was determined using the percent of revenue method.

c.

Prepare an income statement, balance sheet, and statement of cash flows for 2016. (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus s

Required

a.

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.)

b.	Post the general journal entries to T-accounts.