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 $110,000 of services on account.
3. Provided $33,000 of services and received cash.
4. Collected $77,000 cash from accounts receivable.
5. Paid $16,000 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.

Year 2:

1. Wrote off an uncollectible account for $720.
2. Provided $130,000 of services on account.
3. Provided $20,000 of services and collected cash.
4. Collected $112,000 cash from accounts receivable.
5. Paid $30,000 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.

1. d-1. Organize the transaction data in accounts under an accounting equation.
2. d-2. Prepare an income statement for Year 2.
3. d-3. Prepare the statement of changes in stockholders' equity for Year 2.
4. d-4. Prepare the balance sheet for Year 2.
5. d-5. Prepare the statement of cash flows for Year 2.
6. d-6. What is the net realizable value of the accounts receivable at December 31, Year 2?

Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank. Round your answers to the nearest whole dollar.)

LEACH INC.
Accounting Equation for the Year 2
Event	Assets			=	Liabilities	+	Equity			Accounting Titles for Retained Earnings
	Cash	+	NRV Accounts Receivable				Common Stock	+	Retained Earnings
Bal.		+		=		+		+
1.		+		=		+		+
2.		+		=		+		+
3.		+		=		+		+
4.		+		=		+		+
5.		+		=		+		+
6.		+		=		+		+
Bal.	0	+	0	=	0	+	0	+	0

Prepare an income statement for Year 2. (Round your intermediate calculations and final answers to the nearest whole dollar.)

LEACH INC.
Income Statement
For the Year Ended December 31, Year 2
Operating expenses
Total operating expenses		0

Prepare the statement of changes in stockholders' equity for Year 2. (Round your intermediate calculations and final answers to the nearest whole dollar.)

LEACH INC.
Statement of Changes in Stockholders Equity
For the Year Ended December 31, Year 2
Beginning common stock
Ending common stock		$0
Beginning retained earnings
Ending retained earnings		0
Total stockholders equity		$0

Prepare the balance sheet for Year 2. (Round your intermediate calculations and final answers to the nearest whole dollar.)

LEACH INC.
Balance Sheet
As of December 31, Year 2
Assets
		0
Total assets		$0
Liabilities
Stockholders equity
Total stockholders equity		0
Total liabilities and stockholders equity		$0

Prepare the statement of cash flows for Year 2. (Round your intermediate calculations and final answers to the nearest whole dollar. Cash outflows should be indicated with a minus sign.)

LEACH INC.
Statement of Cash Flows
For the Year Ended December 31, Year 2
Cash flows from operating activities
Net cash flow from operating activities		$0
Cash flows from investing activities
Cash flows from financing activities
Net change in cash		0
Ending cash balance		$0

What is the net realizable value of the accounts receivable at December 31, Year 2? (Round your intermediate calculations and final answer to the nearest whole dollar.)

Net realizable value