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Required information Skip to question [The following information applies to the questions displayed below.] Leach Inc. experienced the following events for the first two years

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[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 $110,000 of services on account.
  3. Provided $33,000 of services and received cash.
  4. Collected $77,000 cash from accounts receivable.
  5. Paid $20,000 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 $720.
  2. Provided $130,000 of services on account.
  3. Provided $25,000 of services and collected cash.
  4. Collected $112,000 cash from accounts receivable.
  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 receivable balance will be uncollectible.
  1. d-1. Organize the transaction data in accounts under an accounting equation.
  2. d-2. Prepare an income statement for Year 2.
  3. d-3. Prepare the statement of changes in stockholders' equity for Year 2.
  4. d-4. Prepare the balance sheet for Year 2.
  5. d-5. Prepare the statement of cash flows for Year 2.
  6. d-6. What is the net realizable value of the accounts receivable at December 31, Year 2?

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