Leach Inc. experienced the following events for the first two years of its operations: Year 1:

1. Issued $10,000 of common stock for cash.
2. Provided $70,000 of services on account.
3. Provided $35,000 of services and received cash.
4. Collected $35,000 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 5 percent of the ending accounts receivable balance will be uncollectible.

Year 2:

1. Wrote off an uncollectible account for $2,630.
2. Provided $90,000 of services on account.
3. Provided $20,000 of services and collected cash.
4. Collected $72,000 cash from accounts receivable.
5. Paid $20,000 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.

Prepare the income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for Year 1.

Req B Inc Stmt Req B Stmt SE Req B Bal Sheet Req B Stmt Cash Flows Prepare an income statement for Year 1. LEACH INC. Income Statement For the Year Ended December 31, Year 1 Operating expenses Total operating expenses nces Req B Inc Stmt Req B Stmt SE! Req B Bal Sheet Req B Stmt Cash Flows Prepare the statement of changes in stockholders' equity for Year 1. LEACH INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity