1. Issued $10,000 of common stock for cash. 2. Provided $70,000 of services on account. 3. Provided $31,000 of services and received cash. 4. Collected $39,000 cash from accounts receivable. 5. Paid $20,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 9 percent of the ending accounts receivable balance will be uncollectible. Year 2: 1. Wrote off an uncollectible account for $720. 2. Provided $90,000 of services on account. 3. Provided $15,000 of services and collected cash. 4. Collected $72,000 cash from accounts receivable. 5. Paid $32,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 9 percent of the ending accounts receivable balance will be uncollectible. a. Organize the transaction data in accounts under an accounting equation. b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1 , c. What is the net realizable value of the accounts receivable at December 31 , Year 1 ? Complete this question by entering your answers in the tabs below. Accounting Equation for the Year 1 Income Statement \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ For the Year Ended December 31, Year 1} \\ \hline Operating expenses & & \\ \hline & & \\ \hline & & \\ \hline Total operating expenses & & \\ \hline & & \\ \hline \end{tabular} Statement of Changes in Stockholders' Equity \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ For the Year Ended December 31, Year 1} \\ \hline Beginning common stock & & \\ \hline & & \\ \hline Ending common stock & & $ \\ \hline & & \\ \hline Beginning retained earnings & & \\ \hline & & \\ \hline Ending retained earnings & & 0 \\ \hline Total stockholders' equity & $ & 0 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ As of December 31, Year 1} & \\ \hline Assets & & \\ \hline & & \\ \hline & & \\ \hline Total assets & & \\ \hline Liabilities & & \\ \hline Stockholders' equity & & \\ \hline & & \\ \hline & & \\ \hline Total stockholders' equity & & \\ \hline Total liabilities and stockholders' equity & & 0 \\ \hline \end{tabular} For the Year Ended December 31, Year 1 \begin{tabular}{|l|l|l|} \hline Cash flows from operating activities & & \\ \hline & & \\ \hline Net cash flow from operating activities & & \\ \hline Cash flows from investing activities & & \\ \hline Cash flows from financing activities & & \\ \hline & & \\ \hline & & \\ \hline Net cash flow from financing activities & & \\ \hline & & \\ \hline Net change in cash & & \\ \hline & & \\ \hline Ending cash balance & & \\ \hline \end{tabular} What is the net realizable value of the accounts receivable at December 31 , Year 1
