b. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for 2018. Complete this question by entering your answers in the tabs below. Reg B Inc Reg B Bal Sheet Req B Stmt SE Reg B Stmt Cash Flows Stmt Prepare an income statement for 2018. LEACH INC. Income Statement For the Year Ended December 31, 2018 Operating expenses Total operating expenses 0 Leach Inc. experienced the following events for the first two years of its operations: 2018: 1. Issued $10,000 of common stock for cash. 2. Provided $120,000 of services on account. 3. Provided $31,000 of services and received cash. 4. Collected $89,000 cash from accounts receivable. 5. Paid $14,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 7 percent of the ending accounts receivable balance will be uncollectible. 2019: 1. Wrote off an uncollectible account for $730. 2. Provided $140,000 of services on account. 3. Provided $20,000 of services and collected cash. 4. Collected $122,000 cash from accounts receivable. 5. Paid $26,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 7 percent of the ending accounts receivable balance will be uncollectible. c. What is the net realizable value of the accounts receivable at December 31, 2018? Net realizable value Leach Inc. experienced the following events for the first two years of its operations: 2018: 1. Issued $10,000 of common stock for cash. 2. Provided $120,000 of services on account. 3. Provided $31,000 of services and received cash. 4. Collected $89,000 cash from accounts receivable. 5. Paid $14,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 7 percent of the ending accounts receivable balance will be uncollectible. 2019: 1. Wrote off an uncollectible account for $730. 2. Provided $140,000 of services on account. 3. Provided $20,000 of services and collected cash. 4. Collected $122,000 cash from accounts receivable. 5. Paid $26,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 7 percent of the ending accounts receivable balance will be uncollectible. d-1. Organize the transaction data in accounts under an accounting equation. d-2. Prepare an income statement for 2019. d-3. Prepare the statement of changes in stockholders' equity for 2019. d-4. Prepare the balance sheet for 2019. d-5. Prepare the statement of cash flows for 2019. d-6. What is the net realizable value of the accounts receivable at December 31, 2019? Rainey Enterprises loaned $25,000 to Small Co. on June 1, 2018, for one year at 5 percent interest. Required Show the effects of the following transactions in a horizontal statements. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). For any element not affected by the event, leave the cell blank. (Not every cell will require entry. Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign.) (1) The loan to Small Co. (2) The adjusting entry at December 31, 2018. (3) The adjusting entry and collection of the note on June 1, 2019. RAINEY ENTERPRISES Horizontal Statements Model Income Statement Date Assets Notes Receivable Equity Retained Earnings Interest Receivable Statement of Cash Flow Cash Revenue Expense Net Income 1. 6/1/18 + 2. 12/31/18 + 3. 6/1/19 + + 6/1/19 + + = 6/1/19 + +
