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Year 1: 1. Issued $10,000 of common stock for cash. 2. Provided $100,000 of services on account 3. Provided $27,000 of services and received cash.

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Year 1: 1. Issued $10,000 of common stock for cash. 2. Provided $100,000 of services on account 3. Provided $27,000 of services and received cash. 4. Collected $73,000 cash from accounts receivable. 5. Paid $20,000 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 $680. 2. Provided $120,000 of services on account 3. Provided $15,000 of services and collected cash 4. Collected $102,000 cash from accounts receivable, 5. Paid $22,000 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. Exercise 5-9A (Algo) Part d 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? Drau Navi Required information Complete this question by entering your answers in the tabs below. Reg D1 Req D2 Req D3 Reg D4 Reg DS Reg D6 Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a on the Accounts Titles for Retained Earnings, leave the cell blank Round your answers to the nearest whole dollar.) Event Assets NRV Accounts Cash Receivable 90,000 ol+ 0 Bal 1. LEACH INC. Accounting Equation for the Year 2 Equity Accounting Titles for Retained Liabilities Common Retained Earings Stock Earnings 10,000 0l + ol+ 0 0 + 120,000 Service revenue ol + 0 + 15,000 Service revenue 0 + 01 - 0 0 + 0+ (22,000) Salaries expense 0 + O + Uncollectible accounts expense 0 + 10,000+ 113,000 2 ol O + 3 120,000 0 (102,000) 4 5 15,000+ 102,000+ (22,000) 0 + 185,000+ 6. Bal 18,000 Req D2 > n. Req D1 Req 2 Reg D3 Reg D4 Reg D5 Prepare an income statement for Year 2. (Round your intermediate cali dollar.) LEACH INC. Income Statement For the Year Ended December 31, Year 2 Service revenue Operating expenses Salaries expense Uncollectible accounts expense 0 Total operating expenses Net income

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