Required Information

$[$The following informotion opplies to the questions disployed below.$]$

Leach Incorporated experienced the following events for the first two years of its operations:

Year $1$:

lssued $$10,000$ of common stock for cosh$.$

$2$ Provided $$70,000$ of services on account.

Provided $$33,000$ of services and received cash.

Collected $$37,000$ cash from accounts receivable.

Paid $$22,000$ of salaries expense for the year.

Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that $5$ percent

of the ending occounts receivoble bolance will be uncollectible.

Year $2$:

Wrote off an uncollectible account for $$2,560.$

$2$ Provided $$90,000$ of services on account.

Provided $$20,000$ of services and collected cosh$.$

Collected $$72,000$ cosh from accounts receivable.

Paid $$22,000$ of salaries expense for the year.

Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that $5$ percent of the

ending accounts receivable balance will be uncollectible.

Prepare the income statement, statement of changes in stockholders' equity, balance sheet, ond statement of cash flows for Year $1.$

Complete this question by entering your answers in the tabs below.

Req B Incorne

Req B

Statement

Req B Balance

Sheet.

Req B

Statement

Cash Flows

Prepare the statement of cash flows for Year $1.$

Note: Amounts to be deducted and cash outflows should be indicated with a minus sign.