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Please I need the answer to be completed in a chart format? Leach Inc. experienced the following events for the first two years of its
Please I need the answer to be completed in a chart format?
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 $80,000 of services on account.
- Provided $27,000 of services and received cash.
- Collected $53,000 cash from accounts receivable.
- Paid $20,000 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 $700.
- Provided $100,000 of services on account.
- Provided $30,000 of services and collected cash.
- Collected $82,000 cash from accounts receivable.
- Paid $26,000 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.
Required
- Organize the transaction data in accounts under an accounting equation.
- Make the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1.
- What is the net realizable value of the accounts receivable at December 31, Year 1?
Roth Service Co. experienced the following transactions for Year 1, its first year of operations:
- Provided $78,000 of services on account.
- Collected $47,600 cash from accounts receivable.
- Paid $32,000 of salaries expense for the year.
- Roth adjusted the accounts using the following information from an accounts receivable aging schedule:
- Organize the transaction data in accounts under an accounting equation.
- Prepare an income statement for Roth Service Co. for Year 1.
- What is the net realizable value of the accounts receivable at December 31, Year 1?
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