Required information

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Leach Incorporated experienced the following events for the first two years of its operations:

Year $1$:

$1.$ Issued $$10\mathrm{.}000$ of common stock for cash.

$2.$ Provided $$90,000$ of services on account.

$3.$ Provided $$31,000$ of services and received cash.

$4.$ Collected $$59,000$ 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 $8$ percent of the ending accounts receivable balance will be uncollectible.

Year $2$:

$1.$ Wrote off an uncollectible account for $$710.$

$2.$ Provided $$110,000$ of services on account.

$3.$ Provided $$20,000$ of services and collected cash.

$4.$ Collected $$92,000$ 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 $8$ percent of the ending accounts receivable balance will be uncollectible.

Required

a$.$ Organize the transaction data in accounts under an accounting equation for Year $1.$

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 Income

Statement

Req B

Statement of

Changes

Req B Bal

Sheet

Req B

Statement of

Cash Flows

Req C

Organize the transaction data in accounts under an accounting equation for Year $1.$

Note: Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed. Round your answers up to the nearest whole dollar.

LEACH INCORPORATED

Event

Cash

Assets

Net Realizable Value of

Accounts Receivable

Accounting Equation for Year $1$

Stockholders' Equity

Liabilities

$$ Common

Retained

Stock

Earnings

Account Titles for Retained Earnings

$2.$

$3.$

$4.$

Balance

Rea A

Reg B Income Statement