1. Issued $10,000 of common stock for cash.
2. Provided $100,000 of services on account.
3. Provided $35,000 of services and received cash.
4. Collected $65,000 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 8 percent of the ending accounts receivable balance will be uncollectible.

Year 2:

1. Wrote off an uncollectible account for $650.
2. Provided $120,000 of services on account.
3. Provided $30,000 of services and collected cash.
4. Collected $102,000 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 8 percent of the ending accounts receivable balance will be uncollectible.

YEAR 1

LEACH INC.
Income Statement
For the Year Ended December 31, Year 1
Service revenue
Operating expenses
Salaries expense
Uncollectible accounts expense
Total operating expenses		0
Net income

YEAR 1

LEACH INC.
Statement of Changes in Stockholders Equity
For the Year Ended December 31, Year 1
Beginning common stock
Ending common stock		$0
Beginning retained earnings
Plus: Net income
Ending retained earnings		0
Total stockholders equity		$0

YEAR 1

LEACH INC.
Balance Sheet
As of December 31, Year 1
Assets
Cash
Accounts receivable
		0
Total assets		$0
Liabilities
Stockholders equity
Common stock
Retained earnings
Total stockholders equity		0
Total liabilities and stockholders equity		$0

YEAR 1

LEACH INC.
Statement of Cash Flows
For the Year Ended December 31, Year 1
Cash flows from operating activities
Inflow from customers
Outflow for expenses
Net cash flow from operating activities		$0
Cash flows from investing activities
Cash flows from financing activities
Inflow for issue of common stock
Net change in cash		0
Plus: Beginning cash balance
Ending cash balance		$0