Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations: 1. Provided $91,000 of services on account. 2. Collected $72,000 cash from accounts receivable. 3. Paid $36,000 of salaries expense for the year. 4. Adjusted the accounts using the following information from an accounts receivable aging schedule: Percent Likely Allowance to Number of Days Past Due Current 0-30 Be Balance Uncollectible 0.01 Amount $ 7,800 4,500 2,000 2,200 2,500 0.05 31-60 0.10 61-90 0.20 Over 90 days 0.50 Required a. Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input leave cells blank if there is no corresponding Retained Earnings input needed.) VULCAN SERVICE CO. Accounting Equation for the Year 1 Equity Assets Accounts Receivable 91,000 Accounting Titles for Retained Event Common Retained Earnings Cash Allowance Earnings stock 1. 72,000 + X+ 2. = 3. + = X 4 + + 72,000 Bal 91,000 0 0 0 + *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. b. Prepare the income statement for Vulcan Service Co. for Year 1 VULCAN SERVICE CO. Income Statement For the Year Ended December 31, Year 1 $ 91,000 Service revenue Operating expenses Salaries expense Uncollectible accounts expense $ 36,000 (2,193)X (33,807) $ 57,193 Total operating expenses *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. XX