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HELP IDK Leach Inc, experienced the following events for the first two years of its operations: Year 1; 1. Issued $21,000 of common stock for
HELP IDK
Leach Inc, experienced the following events for the first two years of its operations: Year 1; 1. Issued $21,000 of common stock for cash. 2. Provided $90,100 of services on account 3. Provided $47,000 of services and received cash. 4. Collected $80,000 cash from accounts receivable. 5. Pald $49,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible. 7. Closed the revenue account. 8. Closed the expense account Year 2: 1. Wrote off an uncollectible account for $760. 2. Provided $99,000 of services on account. 3. Provided $43,000 of services and collected cash. 4. Collected $92,000 cash from accounts receivable 5. Paid $76,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible. Journal entry worksheet Wrote off an uncollectible account for $760. Note: Enter debits before credits. Transaction General Journal Debit s-Credit 1 Record entry Clear entry View general Journal LEACH INC. ces Income Statement For the Year Ended December 31, Year 2 Operating expenses Total operating expenses 0 $ 0 LEACH INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 $ 0 0 Total stockholders' equity $ 0 LEACH INC. Balance Sheet As of December 31, Year 2 Assets 0 $ 0 Total assets Liabilities Stockholders' equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 LEACH INC. Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities ces $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash 0 Ending cash balance $ 0 Net realizable value Step by Step Solution
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