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Holloway Company earned $9,500 of service revenue on account during 2018. The company collected $8,075 cash from accounts receivable during 2018.
Question 1: 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.)
1.1. The balance of the accounts receivable that would be reported on the December 31, 2018, balance sheet.1.2. The amount of net income that would be reported on the 2018 income statement.1.3. The amount of net cash flow from operating activities that would be reported on the 2018 statement of cash flows.1.4. The amount of retained earnings that would be reported on the 2018 balance sheet.
Financial Statement Analysis and Preparation
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