Leach Inc experienced the following events for the first two years of its operations Year 1 Issued $17,000 of common stock for cash Provided $85,700 of services on account Provided $43,000 of services and received cash Collected $76,000 cash from accounts receivable Paid $45,000 of salaries expense for the year Adjusted the accounting records to reflect uncollectible accounts expense for the year Leach estimates that 4 percent of the ending accounts receivable balance will be uncollectible Closed the revenue account Closed the expense account Year 2 Wrote off an uncollectible account for $750 Provided $95,000 of services on account Provided $39,000 of services and collected cash Collected $88,000 cash from accounts receivable Paid $72,000 of salaries expense for the year Adjusted the accounts to reflect uncollectible accounts expense for the year Leach estimates that 4 percent of the ending accounts receivable balance will be uncollectible b Prepare the income statement, statement of changes in stockholders equity, and balance sheet for Year 1 (Balance Sheet only Items to be deducted must be indicated with a minus sign )

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Posted on Aug 05, 2024

Leach Inc. experienced the following events for the first two years of its operations: Year 1: Issued $17,000 of common stock for cash. Provided $85,700

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

Issued $17,000 of common stock for cash.
Provided $85,700 of services on account.
Provided $43,000 of services and received cash.
Collected $76,000 cash from accounts receivable.
Paid $45,000 of salaries expense for the year.
Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 4 percent of the ending accounts receivable balance will be uncollectible.
Closed the revenue account.
Closed the expense account.

Year 2:

Wrote off an uncollectible account for $750.
Provided $95,000 of services on account.
Provided $39,000 of services and collected cash.
Collected $88,000 cash from accounts receivable.
Paid $72,000 of salaries expense for the year.
Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 4 percent of the ending accounts receivable balance will be uncollectible.

b. Prepare the income statement, statement of changes in stockholders equity, and balance sheet for Year 1. (Balance Sheet only: Items to be deducted must be indicated with a minus sign.)