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

Year 1:

1. Issued $19,000 of common stock for cash.

2. Provided $87,900 of services on account.

3. Provided $45,000 of services and received cash.

4. Collected $78,000 cash from accounts receivable.

5. Paid $47,000 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 accounts.

b. Prepare the income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for Year 1.

c. What is the net realizable value of the accounts receivable at December 31, Year 1?

Prepare the income statement for Year 1. Prepare the statement of changes in stockholders' equity for Year 1. Prepare the balance sheet for Year 1. (Enter amounts to be deducted with a minus sign.) Prepare the statement of cash flows for Year 1. (Enter cash outflows wit) c. What is the net realizable value of the accounts receivable at December 31 , Year 1