Required information [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 $60,000 of services on account. 3. Provided $27,000 of services and received cash. 4. Collected $33,000 cash from accounts receivable. 5. Paid $16,000 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 $660. 2. Provided $80,000 of services on account. 3. Provided $25,000 of services and collected cash. 4. Collected $62,000 cash from accounts receivable. 5. Paid $26,000 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. ! Required information no effect LEACH INC. Accounting Equation for the Year 2 Equity Liabilities Common Stock Event + Assets NRV Accounts Receivable + 25,380 Accounting Titles for Retained Earnings Cash + Retained Earnings 69,380 Bal. 54,000 = 0 + 10,000 + 1. + 0 = + + + + 80,000 = + + + 2. 3. 80,000 Service revenue 25,000 Service revenue = + + + 4. OOOO (62,000) = + 25.000 + 62,000 + (26,000) + + + 5. + + + + 6. Bal. (26,000) Salaries expense (2,603) Uncollectible accounts expense 145,777 (2,603) X = 40,777 115,000 + 0 + 10,000 + d-1. Organize the transaction data in accounts under an accounting equation. d-2. Prepare an income statement for Year 2. d-3. Prepare the statement of changes in stockholders' equity for Year 2. d-4. Prepare the balance sheet for Year 2. d-5. Prepare the statement of cash flows for Year 2. d-6. What is the net realizable value of the accounts receivable at December 31, Year 2