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 $120,000 of services on account. 3. Provided $29,000 of services and received cash. 4. Collected $91,000 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 $700. 2. Provided $140,000 of services on account 3. Provided $15,000 of services and collected cash. 4. Collected $122.000 cash from accounts receivable. 5. Paid $24,000 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. 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? Event LEACH INC. Accounting Equation for the Year 2 Equity Liabilities Common Retained Stock Earnings 10,000+ Assets NRV Accounts Receivable Cash Accounting Titles for Retained Earnings Bal. + 1. 2. + 3. 5 6 Bal + 0 0 0 + 10,000 Reg D2 > LEACH INC. Income Statement For the Year Ended December 31, Year 2 Service revenue Operating expenses Salaries expense Uncollectible accounts expense Total operating expenses 0 LEACH INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Beginning common stock $ 10,000 Ending common stock $ 10,000 75,550 Beginning retained earnings Plus: Net income Ending retained earnings Total stockholders' equity 75,550 $ 85,550 LEACH INC. Balance Sheet As of December 31, Year 2 Assets Cash ces 0 $ 0 Total assets Liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity 0 $ LEACH INC. Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash 0 Ending cash balance $ 0 Reg D1 Req D2 Reg D3 Req D4 Reg D5 Req D6 What is the net realizable value of the accounts receivable at December 31, Year 2? (Ro. and final answer to the nearest whole dollar.) ...... Net realizable value
