Event Cash Year 1 Assets NRV Balance Sheet Accounts Receivable Equity Account Titles for Retained Earnings...

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Event Cash Year 1 Assets NRV Balance Sheet Accounts Receivable Equity Account Titles for Retained Earnings Liabilities Retained Earnings 1. 0+ 190,000 = 0 + 190,000 Service revenue 2. 142,500 + (142,500) 0 + 0 3. (32,000) + 0 0+ (32,000) Salaries expense 4. 0+ 0 (1,400) + (1,400) Balance 110,500 + 47,500 = (1,400) + 156,600 HOLMES CLEANING SERVICE Income Statement For the Year Ended December 31, Year 1 Service revenue $ 190,000 Operating expenses Salaries expense $ 32,000 Uncollectible accounts expense 1,400 Total operating expenses Net income (33,400) $ 156,600 Assets Cash HOLMES CLEANING SERVICE Accounts receivable Balance Sheet As of December 31, Year 1 Less: Allowance for doubtful accounts Total assets Liabilities Stockholders' Equity Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 47,500 $ 110,500 (1,400) 46,100 $ 156,600 156,600 156,600 $156,600 HOLMES CLEANING SERVICE Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities Inflow from customers Outflow for expenses Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance $ 142,500 (32,000) $ 110,500 110,500 $ 110,500 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 $190,000 of cleaning services on account. 2. Collected $142,500 cash from accounts receivable. 3. Paid salaries of $32,000 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1,400. The expense was determined using the percent of revenue method. Required: a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement, a balance sheet, and a statement of cash flows for Year 1. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Organize the transaction data in accounts under an accounting equation. Note: Enter any decreases to account balances with a minus sign. Not all cells require input. Event Cash Year 1 Assets NRV Balance Sheet Accounts Receivable Equity Account Titles for Retained Earnings Liabilities Retained Earnings 1. 0+ 190,000 = 0 + 190,000 Service revenue 2. 142,500 + (142,500) 0 + 0 3. (32,000) + 0 0+ (32,000) Salaries expense 4. 0+ 0 (1,400) + (1,400) Balance 110,500 + 47,500 = (1,400) + 156,600 HOLMES CLEANING SERVICE Income Statement For the Year Ended December 31, Year 1 Service revenue $ 190,000 Operating expenses Salaries expense $ 32,000 Uncollectible accounts expense 1,400 Total operating expenses Net income (33,400) $ 156,600 Assets Cash HOLMES CLEANING SERVICE Accounts receivable Balance Sheet As of December 31, Year 1 Less: Allowance for doubtful accounts Total assets Liabilities Stockholders' Equity Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 47,500 $ 110,500 (1,400) 46,100 $ 156,600 156,600 156,600 $156,600 HOLMES CLEANING SERVICE Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities Inflow from customers Outflow for expenses Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance $ 142,500 (32,000) $ 110,500 110,500 $ 110,500 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 $190,000 of cleaning services on account. 2. Collected $142,500 cash from accounts receivable. 3. Paid salaries of $32,000 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1,400. The expense was determined using the percent of revenue method. Required: a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement, a balance sheet, and a statement of cash flows for Year 1. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Organize the transaction data in accounts under an accounting equation. Note: Enter any decreases to account balances with a minus sign. Not all cells require input.