holloway company started operations on january 1, year 1. during year 1, holloway earned $18,000 of service…

holloway company started operations on january 1, year 1. during year 1, holloway earned $18,000 of service revenue and collected $14,000 cash from accounts receivable. required: based on this information alone, determine the following for holloway company. (hint: record the events in general ledger accounts under an accounting equation before satisfying the requirements.) a. the balance of the accounts receivable that would be reported on the december 31, year 1, balance sheet. b. the amount of net income that would be reported on the year 1 income statement. c. the amount of net cash flow from operating activities that would be reported on the year 1 statement of cash flows. d. the amount of retained earnings that would be reported on the year 1 balance sheet. complete this question by entering your answers in the tabs below. accounting equation req a to d based on this information alone, determine the following for holloway company. (hint: record the events in general ledger accounts under an accounting equation before satisfying the requirements.) note: not all cells require input. enter any decreases to account balances with a minus sign.

holloway company started operations on january 1, year 1. during year 1, holloway earned $18,000 of service revenue and collected $14,000 cash from accounts receivable. required: based on this information alone, determine the following for holloway company. (hint: record the events in general ledger accounts under an accounting equation before satisfying the requirements.) a. the balance of the accounts receivable that would be reported on the december 31, year 1, balance sheet. b. the amount of net income that would be reported on the year 1 income statement. c. the amount of net cash flow from operating activities that would be reported on the year 1 statement of cash flows. d. the amount of retained earnings that would be reported on the year 1 balance sheet. complete this question by entering your answers in the tabs below. accounting equation req a to d based on this information alone, determine the following for holloway company. (hint: record the events in general ledger accounts under an accounting equation before satisfying the requirements.) note: not all cells require input. enter any decreases to account balances with a minus sign.

Answer

Explanation:

Step1: Calculate accounts - receivable balance

Accounts - receivable increases by the amount of un - collected revenue. Revenue is $18,000 and cash collected is $14,000. So, accounts - receivable balance = $18,000 - $14,000. $18000 - 14000=4000$

Step2: Determine net income

Net income is equal to service revenue since no expenses are given. So, net income = $18,000.

Step3: Calculate net cash flow from operating activities

Net cash flow from operating activities is the cash collected from accounts receivable, which is $14,000.

Step4: Calculate retained earnings

Retained earnings is equal to net income in the absence of dividends. So, retained earnings = $18,000.

Answer:

a. $4,000 b. $18,000 c. $14,000 d. $18,000