Leach Incorporated experienced the following events for the first two years of its operations. Year 1: 1. Issued $10,000 of common stock for cash. 2. Provided $78,000 of services on account 3. Provided $36,000 of services and recelved cash. 4. Collected $69,000 cash from accounts recelvable. 5. Pald $38.000 of salarles 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 recelvable balance will be uncollectible. 7. Closed the revenue account. 8. Closed the expense accounts. Year 2 : 1. Wrote off an uncollectible account for $650. 2. Provided $88,000 of services on account. 3. Provided $32,000 of services and collected cash. 4. Collected $81,000 cash from accounts recelvable. 5. Pald $65,000 of salarles 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 recelvable balance will be uncollectible. 7. Closed the revenue account. 8. Closed the expense accounts. Exercise 7.7A (Static) Part b Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year \begin{tabular}{|l|r|r|r|} \hline \multicolumn{3}{|c|}{ Cash } \\ \hline Beginning balance & 0 & 0 & \\ \hline 1. & 10,000 & 38,000 & 5 \\ \hline 3. & 36,000 & 0 & \\ \hline 4. & 69,000 & 0 & \\ \hline & 0 & 0 & \\ \hline Ending balance & 77,000 & & \\ \hline \end{tabular} \begin{tabular}{|l|r|r|r|} \hline & Common Stock \\ \hline Beginning balance & 0 & 0 & \\ \hline & 0 & 10,000 & 1. \\ \hline & 0 & 0 & \\ \hline Ending balance & & 10,000 & \\ \hline \end{tabular} Accounts Receivable Beginning balance Ending balance \begin{tabular}{|l|r|r|r|} \hline Beginning balance & 0 & 0 \\ \hline 8cl & 38,450 & 114,000 & 7 \\ \hline & 0 & 0 & \\ \hline Ending balance & & 75,550 \\ \hline \end{tabular}