Required information Execise 7-7A Effect of recognizing uncollectible accounts on the financial statements: percent of receivables allowance method LO 7-2 (The following information applies to the questions displayed belowJ Leach Inc. experienced the following events for the first two years of its operations: Year 1 1. Issued $17,000 of common stock for cash 2. Provided $85,700 of services on account 3. Provided $43,000 of services and received cash. 4. Collected $76,000 cash from accounts receivable 5. Paid $45,000 of salaries expense for the year 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 4 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 $750 2. Provided $95,000 of services on account. 3. Provided $39,000 of services and collected cash. 4. Collected $88,000 cash from accounts receivable 5. Paid $72,000 of salaries expense for the year 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 4 percent of the ending accounts receivable balance will be uncollectible Exercise 7-7A Part d d. Repeat parts a, b, and c for Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign. Round your answers to nearest whole dollar.) Journal entry worksheet Wrote off an uncollectible account for $750 Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Provided $95,000 of services on account. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Provided $39,000 of services and collected cash Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Collected $88,000 cash from accounts receivable. Note: Enter debits before credits. Transaction General Journal Debit Credit 4 Record entry Clear entry View general journal Journal entry worksheet Paid $72,000 of salaries expense for the year. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 4 percent of the ending accounts receivable balance wil be uncollectible. Note: Enter debits before credits. Transaction General Journal Debit Credit 6 Record entry Clear entry View general journal Beg Bal Beg Bal End. Bal End. Bai Beg Bal End. Bal Beg Bal Beg Bwl End. Bal End Bal Beg. Bal. Bag Bal End. Bal End Bal LEACH INC For the Year Ended D r 31, Year 2 Operitng openses Total operating expenses LEACH INC Statement of Changes in Stookholders' Equity For the Year Ended D 1, Year 2 LEACH INC. Balance Sheet As of December 31, Year 2 Assets Total sssets Liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity LEACH INC. Statement of Cash Flows For the Year Ended December 31, Year2 Cash flow from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance Net reslizable value Required information Execise 7-7A Effect of recognizing uncollectible accounts on the financial statements: percent of receivables allowance method LO 7-2 (The following information applies to the questions displayed belowJ Leach Inc. experienced the following events for the first two years of its operations: Year 1 1. Issued $17,000 of common stock for cash 2. Provided $85,700 of services on account 3. Provided $43,000 of services and received cash. 4. Collected $76,000 cash from accounts receivable 5. Paid $45,000 of salaries expense for the year 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 4 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 $750 2. Provided $95,000 of services on account. 3. Provided $39,000 of services and collected cash. 4. Collected $88,000 cash from accounts receivable 5. Paid $72,000 of salaries expense for the year 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 4 percent of the ending accounts receivable balance will be uncollectible Exercise 7-7A Part d d. Repeat parts a, b, and c for Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign. Round your answers to nearest whole dollar.) Journal entry worksheet Wrote off an uncollectible account for $750 Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Provided $95,000 of services on account. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Provided $39,000 of services and collected cash Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Collected $88,000 cash from accounts receivable. Note: Enter debits before credits. Transaction General Journal Debit Credit 4 Record entry Clear entry View general journal Journal entry worksheet Paid $72,000 of salaries expense for the year. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 4 percent of the ending accounts receivable balance wil be uncollectible. Note: Enter debits before credits. Transaction General Journal Debit Credit 6 Record entry Clear entry View general journal Beg Bal Beg Bal End. Bal End. Bai Beg Bal End. Bal Beg Bal Beg Bwl End. Bal End Bal Beg. Bal. Bag Bal End. Bal End Bal LEACH INC For the Year Ended D r 31, Year 2 Operitng openses Total operating expenses LEACH INC Statement of Changes in Stookholders' Equity For the Year Ended D 1, Year 2 LEACH INC. Balance Sheet As of December 31, Year 2 Assets Total sssets Liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity LEACH INC. Statement of Cash Flows For the Year Ended December 31, Year2 Cash flow from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance Net reslizable value