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: Yeart: 1. Issued $10,000 of common stock for cash. 2. Provided $90,000 of services on account. 3. Provided $29.000 of services and received cash. 4. Collected $61,000 cash from accounts receivable. 5. Pald $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 $700. 2. Provided $110,000 of services on account. 3. Provided $25,000 of services and collected cash. 4. Collected $92,000 cash from accounts receivable. 5. Pald $22,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leech 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 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. RA Re Inc Stmt Reg Sumt of Changes Regal Sheet Reg Stmt Cash Flows Reqc Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a mission. If there is no act on the Accounts Titles for Retained Earnings, leave the cell blank. Not all cells will require entry) LEACH INC Accounting Equation for the Year Equity Liabinties Commen Retained Stock Earnings - Event Assets NAV Account Receivable Cash Accounting Tities for Retained Earnings 1 2 1 4 5 6 0- Regine Str> Req A Reg B Inc Stmt Req B Stmt of Changes Reg B Bal Sheet Req B Simt Cash Flows Reqc Prepare the income statement for Year 1. LEACH INC. Income Statement For the Year Ended December 31, Year 1 Operating expenses Total operating expenses 0 LEACH INC. Statement of Changes in Stockholders' Equity For tho Year Ended December 31, Year 1 Beginning common stock Ending common stock $ 0 Beginning retained earnings Ending retained earnings Total stockholders' equity $ 0 Prepare the balance sheet for Year 1. LEACH INC Balance Sheet As of December 31, Year 1 Assets 0 $ Total assets Liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity E . i LEACH INC Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net cash flow from financing activities 0 Nel change in cash 0 Ending cash balance 0 Reg B Inc Req B Stmt of Req Reg B Bal Req B Stmt Stmt Changes Sheet Cash Flows Req What is the net realizable value of the accounts receivable at December 31, Year Not realizablo value
