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

Year 1:

Issued $10,000 of common stock for cash.

Provided $100,000 of services on account.

Provided $31,000 of services and received cash.

Collected $69,000 cash from accounts receivable.

Paid $14,000 of salaries expense for the year.

Adjusted the accounting records to reflect uncollectible accounts expense for the year.

Leach estimates that 9 percent of the ending accounts receivable balance will be uncollectible.

Year 2:

Wrote off an uncollectible account for $720.

Provided $120,000 of services on account.

Provided $15,000 of services and collected cash.

Collected $102,000 cash from accounts receivable.

Paid $30,000 of salaries expense for the year.

Adjusted the accounts to reflect uncollectible accounts expense for the year.

Leach estimates that 9 percent of the ending accounts receivable balance will be uncollectible.

Exercise 5-9A (Algo)

Part d

d-1. Organize the transaction data in accounts under an accounting equation.

d-2. Prepare an income statement for Year 2.

d-3. Prepare the statement of changes in stockholders' equity for Year 2.

d-4. Prepare the balance sheet for Year 2.

d-5. Prepare the statement of cash flows for Year 2.

d-6. What is the net realizable value of the accounts receivable at December 31, Year 2?