Question
Leach Incorporated experienced the following events for the first two years of its operations: Year 1: Issued $10,000 of common stock for cash. Provided $70,000
Leach Incorporated experienced the following events for the first two years of its operations:
Year 1:
Issued $10,000 of common stock for cash.
Provided $70,000 of services on account.
Provided $33,000 of services and received cash.
Collected $37,000 cash from accounts receivable.
Paid $12,000 of salaries expense for the year.
Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts receivable balance will be uncollectible.
Year 2:
Wrote off an uncollectible account for $2,660.
Provided $90,000 of services on account.
Provided $15,000 of services and collected cash.
Collected $72,000 cash from accounts receivable.
Paid $20,000 of salaries expense for the year.
Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts receivable balance will be uncollectible.
Exercise 7-7A (Algo) Part a
Required:
a. Organize the transaction data in accounts under an accounting equation.
Note: Enter any decreases to account balances with a minus sign. Not all cells require input.
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