Question

Holloway Company earned $4,400 of service revenue on account during Year 1. The company collected $3,740 cash from accounts receivable during Year 1.

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.) (Enter any decreases to account balances with a minus sign.)
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 AccountingReq A to D Equation Based on this information alone, determine the following for Holloway Company. (Hint: Record the events in general ledger under an accounting equation before satisfying the requirements.) (Enter any decreases to account balances with a minus HOLLOWAY COMPANY Effect of Events on the Year 1 Accounting Equation Assets Liabilities+ Stockholders' Equity Event Common Retained Earnings Accounts Cash Receivable Stock + Earned revenue Collected accounts receivable Ending balance Req A to D>

Answer 1

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