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 $80,000 of services on account 3. Provided $35,000 of services and received cash. 4. Collected $45,000 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 $670. 2. Provided $100,000 of services on account. 3. Provided $30,000 of services and collected cash 4. Collected $82,000 cash from accounts receivable, 5. Paid $32,000 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 a. Organize the transaction data in accounts under an accounting equation. 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 Reg 8 Inc Req B Stmt of Reg B Bal Red B Stmt Stot Changes Sheet Cash Flows Reac Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Tities for Retained Earnings, leave the cell blank. Not all cells will require entry) LEACH INC. Accounting Equation for the Year 1 Assets Equity Event Accounting Titles for Retained NRV Accounts Liabilities Common Retained Cash Earnings Receivable Stock Earnings 1 2 3. . 4 +-+-+ 5. 6 Bal Saved Hel 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. Red B Stmt Cash Flows Reqc Reg B Inc ReqA Reg B Stmt of Reg B Bal Stmt Changes Sheet Prepare the income statement for Year 1. LEACH INC Income Statement For the Year Ended December 31, Year 1 Operating expenses 0 Total operating expenses Required a. Organize the transaction data in accounts under an accounting equation 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. Regc Reg A Req B Inc Reg B Stmt of Req B Bal Req B Stmt Stmt Changes Sheet Cash Flows Prepare the statement of changes in stockholders' equity for Year 1. LEACH INC Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 Beginning common stock Ending common stock $ 0 Beginning retained earnings Ending retained earnings Total stockholders' equity 0 0 $
