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 $70,000 of services on account. 3. Provided $31,000 of services and received cash. 4. Collected $39,000 cash from accounts receivable. 5. Paid $18,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible. Year 2: 1. Wrote off an uncollectible account for $750. 2. Provided $90,000 of services on account. 3. Provided $30,000 of services and collected cash. 4. Collected $72,000 cash from accounts receivable. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimatls that 5 percent of the ending accounts receivable balance will be uncollectible. Required a. Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is no corresponding Retained Earnings input needed.) LEACH INC. Accounting Equation for the Year 1 Equity Liabilities Common Retained Allowance stock Earnings Event Assets Accounts Receivable Cash Accounting Titles for Retained Earnings 1 + 2. 3. + 5. 6. Bal. + 0 0+ 0 + b. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1. Complete this question by entering your answers in the tabs below. Reg B Inc Stmt Req B Stmt SE Req B Bal Sheet Reg B Stmt Cash Flows Prepare an income statement for Year 1. LEACH INC. Income Statement For the Year Ended December 31, Year 1 Operating expenses Total operating expenses 0 ducation.com/ext/map/index.html?_con=con&external browser=0&launchUrl=https%253A%252F% Saved b. Prepare an income statement, statement of changes in stockholders' equity, balance Complete this question by entering your answers in the tabs below. Req B Inc Stmt Req B Stmt SE Req B Bal Sheet Req B Stmt 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 0 Ending retained earnings Total stockholders' equity $ 0 Required information HY Stmt Req B Stmt SE! HY Sheet YUR Cash Flows Prepare the balance sheet for Year 1. LEACH INC Balance Sheet As of December 31, Year 1 Assets 0 $ 0 Total assets Liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity 0 $ 0 Required information wy Stmt Req B Stmt SE w Sheet UT Cash Flows Prepare the statement of cash flows for Year 1. (Amounts to be deducted should be indicated with a minus sign.) 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 Inflow for issue of common stock Net change in cash 0 Ending cash balance 0 Req B Bal Sheet B Sim Cash Five
