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 $13,000 of common stock for cash. 2. Provided $81,300 of services on account. 3. Provided $39,000 of services and received cash. 4. Collected $72,000 cash from accounts receivable. 5. Paid $41,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 4 percent of the ending accounts receivable balance will be uncollectible. 7. Closed the revenue account. 8. Closed the expense account. Year 2: 1. Wrote off an uncollectible account for $700. 2. Provided $91,000 of services on account. 3. Provided $35,000 of services and collected cash. 4. Collected $84,000 cash from accounts receivable. 5. Paid $68,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 4 percent of the ending accounts receivable balance will be uncollectible. b. Prepare the income statement, statement of changes in stockholders' equity, and balance sheet for Year 1. (Balance Sheet only: Items to be deducted must be indicated with a minus sign.) LEACH INC. Income Statement For the Year Ended December 31, Year 1 Service revenue Operating expenses Salaries expense Uncollectible accounts expense Total operating expenses 0 Net income $ 0 LEACH INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 Beginning common stock Plus: Stock issued Ending common stock $ Beginning retained earnings Plus: Net income 0 0 Ending retained earnings Total stockholders' equity $ 0 LEACH INC. Balance Sheet As of December 31, Year 1 Assets Cash Accounts receivable Less: Allowance for doubtful accounts 0 Total assets 0 Liabilities Stockholders' equity Common stock Retained earnings 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0