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 $80,000 of services on account.
3. Provided $33,000 of services and received cash.
4. Collected $47,000 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.

2019:

1. Wrote off an uncollectible account for $670.
2. Provided $100,000 of services on account.
3. Provided $25,000 of services and collected cash.
4. Collected $82,000 cash from accounts receivable.
5. Paid $28,000 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.

Required

1. 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.)

LEACH INC.

Accounting Equation for the Year 2018

Event

Assets

=

Liabilities

+

Equity

Accounting Titles for Retained Earnings

Cash

+

Accounts Receivable

Allowance

Common stock

+

Retained Earnings

1.

+

=

+

+

2.

+

=

+

+

3.

+

=

+

+

4.

+

=

+

+

5.

+

=

+

+

6.

+

=

+

+

Bal.

0

+

0

0

=

0

+

0

+

0