Leach Inc. experienced the following events for the first two years of its operations: Year 1: 1. Issued $16,000 of common stock for cash. 2. Provided $84,600 of services on account. 3. Provided $42,000 of services and received cash. 4. Collected $75,000 cash from accounts receivable. 5. Paid $44,000 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 7. Closed the revenue account 8. Closed the expense account. Year 2: 1. Wrote off an uncollectible account for $720. 2. Provided $94,000 of services on account. 3. Provided $38,000 of services and collected cash. 4. Collected $87,000 cash from accounts receivable. 5. Paid $71,000 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. 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. Exercise 7-7A Part b b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1 (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign.) LEACH INC. Income Statement For the Year Ended December 31, Year 1 es Operating expenses Total operating expenses 0 LEACH INC. Statement of Changes in Stockholders' Equlty For the Year Ended December 31, Year 1 $ 0 Total stockholders' equity 0 LEACH INC. Balance Sheet As of December 31, Year 1 Assets LEACH INC. Balance Sheet As of December 31, Year 1 Assets 0 Total assets $ Liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity $ 0