Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting College Version

Authors: Steven M. Bragg

1st Edition

1938910702, 978-1938910708

More Books

Students also viewed these Accounting questions

Question

1. What questioning techniques are used, and their effectiveness.

Answered: 1 week ago

Question

Excel caculation on cascade mental health clinic

Answered: 1 week ago