Required information Exercise 7-7A (Algo) 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 below.] 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 $60,000 of services on account. 3. Provided $29,000 of services and received cash. 4. Collected $31,000 cash from accounts receivable. 5. Paid $14,000 of salaries expense for the year. 6. 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 1. Wrote off an uncollectible account for $2,660. 2. Provided $80,000 of services on account. 3. Provided $20,000 of services and collected cash. 4. Collected $62,000 cash from accounts recelvable. 5. Paid $30,000 of salaries expense for the year, 6. Adjusted the accounts to reflect uncollectible accounts expense for the year, Leach estimates that 6 percent of the ending accounts recelvable balance will be uncollectible. Exercise 7-7A (Algo) Part b b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1 . Complete this question by entering your answers in the tabs below. Prepare an income statement for Year 1 , Required information Exercise 7.7A (Algo) Effect of recognizing uncollectible accounts on the financial statements: Percent of receivables allowance method LO 72 [The following information applies to the questions displayed below] 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 $60,000 of services on account. 3. Provided $29,000 of services and recelved cash. 4. Collected $31,000 cash from accounts receivable. 5. Paid $14,000 of salaries expense for the year. 6. Adjusted the accounting records to refiect uncolloctible accounts expense for the year Leach estimates that 6 percent of the ending accounts recevable balance will be uncollectible. Year 2: 1. Wrote off an uncollectible account for $2,660 2. Provided $80,000 of services on account. 3. Provided $20,000 of services and collected cash. 4. Collected $62,000 cash from accounts recelvable. 5. Paid $30,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year Leach estimates that 6 percent of the ending accounts recesvable balance will be uncollectible. Exercise 7-7A (Algo) Part b b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1 . Complete this question by entering your answers in the tabs below. Prepare the statement of changes in stockholders' equity for Year 1. Required information Exercise 7.7A (Algo) Effect of recognizing uncollectible accounts on the financial statements: Percent of recelvables allowance method LO7.2 [The following information opplies to the questions displayed below.] 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 $60,000 of services on account. 3. Provided $29,000 of services and received cash. 4. Collected $31,000 cash from accounts recelvable. 5. Paid $14,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncoliectible accounts expense for the year, Leach estimates. that 6 percent of the ending accounts receivable balance will be uncollectible. Year 2: 1. Wrote off an uncollectible account for $2,660. 2. Provided $80,000 of services on account. 3. Provided $20,000 of services and collected cash. 4. Collected $62,000 cash from accounts recelvable. 5. Paid $30,000 of salaries expense for the yeat. 6. Adjusted the accounts to refiect uncollectible accounts expense for the yoar. Leach estimotes that 6 percent of the ending accounts receivable bolance will be uncollectible. Exercise 7-7A (Algo) Part b b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flaws for Year 1 . Complete this question by entering your answers in the tabs below. Prepare the balance sheet for Year 1. Required information Exercise 7.7A (Algo) Effect of recognixing uncoliectible accounts on the financial statements: Percent of recelvables allowance method 1072 [The following infomation applies to the questions displayped belows] Leach incorporated experienced the following eveats for the tirst two yours of its aperabicns: Year 1 : 1. lssued $10.000 of common stock for cash. 2. Provided $60.000 of services on account. 3. Provided $29,000 of services and receliod cash. 4. Coliected $31,000 cash from accounts receivable. 5. Paid $4,000 of salaries expense for the yeac. 6. Afjusted the accounting records to refiect uncoliectible accounts expense for the year Leach estimetes that 6 percent of the ending accounts recewable balance will be uncollectibie. Year 2= 1. Wrote off an uncollectible account for $2,650. 2. Provided $80,000 of services on account. 3. Provided $20,000 of services and collected cash. 4. Collected $62,000 cash from accounts recelvable. 5. Paid $30,000 of salaries expense for the year 6. Adjusted the accounts to refect uncollectible accounts expense for the year Leach estimates that 6 percent of the ending accounts receivabie balance will be uncollectible Exercise 7-7A (Algo) Part b b. Prepore the income statement, stase ment of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1. Complete this question by entering your answers in the tabs below. Prepare the statement of cash fiows for Year 1. Note: Amounts to be deducted and cash outfiows should be indicated with a minus sign