Required information Exercise 5-9A (Algo) Effect of recognizing uncollectible accounts on the financial statements: Percent of receivables allowance method LO 5-2 (The following information applies to the questions displayed below] Leach Inc. 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 $100,000 of services on account 3. Provided $25,000 of services and received cash 4 Collected $75,000 cash from accounts receivable 5. Paid $22.000 of salanes expense for the year 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year Leach estimates that 7 percent of the ending accounts receivable balance will be uncollectible Year 2 1. Wrote off an uncollectible account for $710 2. Provided $120,000 of services on account 3. Provided $15,000 of services and collected cash 4. Collected $102.000 cash from accounts receivable 5. Paid $22.000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year Leach estimates that 7 percent of the ending accounts receivable balance will be uncodectible Exercise 5-9A (Algo) Parts a to c Required a. Organize the transaction data in accounts under an accounting equation b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash Sows for Year 1 c. What is the net realizable value of the accounts receivable at December 31, Wear 17 e. Organize the transaction data in accounts under an accounting equation 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 Complete this question by entering your answers in the tabs below. Reg A Req Bric Req B Strt of Stmt Changes Req B Bal Req Stint Sheet Cash Flows Red C Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Gamings, leave the cell baroc. Not all cels will require try.) LEACHING Accounting Equation for the Year 1 Assets Epaity Event Cash NRV Accounts Liabilities Receivable Commi Stock Accounting Titles for Retained Eamings 1 2 3 " 4. TH 5 " 6. + Bal 0 0+ 10+ Req B Inc Stmt> Complete this question by entering your answers in the tabs below. Red A Reg 8 Inc Stint Req B Stmt of Changes Req B Bal Sheet Req B Stmt Cash Flows Req C Prepare the income statement for Year 1. LEACH INC. Income Statement For the Year Ended December 31. Year 1 Operating expenses Total operating expenses Complete this question by entering your answers in the tabs below. Red A Req B Inc Stmt Req B Stmt of Changes Req B Ball Sheet Req B Stmt Cash Flows Req C Prepare the statement of changes in stockholders' equity for Year 1. LEACH INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 Beginning common stock Ending common stock Beginning retained earnings Ending retained eamings Total stockholders' equity Req A Req B Inc Stmt Req B Stmt of Changes Req B Bal Sheet Req B Stmt Cash Flows Req C Prepare the balance sheet for Year 1. LEACH INC. Balance Sheet As of December 31, Year 1 Assets Total assets Liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity < Rea B Stmt. of Changes $ 0 $ 10 Ron B.Stant Goch Flow Req A Req B Inc Stmt Req B Stmt of Changes Req B Bal Sheet Keq B Stmt Cash Flows Req C Prepare the statement of cash flows for Year 1. (Cash outflows should be indicated wit LEACH INC. Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities Net cash flow from operating activities $ Cash flows from investing activities Cash flows from financing activities Net cash flow from financing activities $ 0 Net change in cash Ending cash balance $ EA 0 0 Req a. Organize the transaction data in accounts under an accounting equation. 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? Complete this question by entering your answers in the tabs below. Reg A Req B Inc. Req B Stmt of Stmt Changes Req B Bal Sheet Req B Stmt Cash Flows Req C What is the net realizable value of the accounts receivable at December 31, Year 17 Net realizable value