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:
Provided $180,000 of cleaning services on account.
Collected $135,000 cash from accounts receivable.
Paid salaries of $36,000 for the year.
Adjusted the accounts to reflect management’s expectations that uncollectible accounts expense would be $2,200. The expense was determined using the percent of revenue method.
Requireda. 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.

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500