Year 1:

1. Issued $10,000 of common stock for cash.
2. Provided $80,000 of services on account.
3. Provided $25,000 of services and received cash.
4. Collected $55,000 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 6 percent of the ending accounts receivable balance will be uncollectible.

Year 2:

1. Wrote off an uncollectible account for $750.
2. Provided $100,000 of services on account.
3. Provided $25,000 of services and collected cash.
4. Collected $82,000 cash from accounts receivable.
5. Paid $30,000 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.

Required a. Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".) LEACH INC. Accounting Equation for the Year 1 Assets Equity Accounting Titles for Retained Event Accounts E Liabilities + + Allowance Common Retained Cash Earnings Receivable stock + Earnings 1. + + 2. + 3. + 4. + 5. S 6. + Bal. 0 + 0 0 + 0Req B Inc Stmt Req B Stmt SE Req B Bal Req B Stmt Sheet 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 Req B Inc Req B Stmt Stmt Req B Stmt SE Req B Bal Sheet 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 Beginning retained earnings Ending retained earnings 0 Total stockholders' equity 0 Req B Inc Req B Stmt SE Req B Bal Req B Stmt Stmt Sheet Cash Flows Prepare the balance sheet for Year 1. LEACH INC. Balance Sheet As of December 31, Year 1 Assets 0 Total assets 0 Liabilities Stockholders' equity Total stockholders' equity 0 Total liabilities and stockholders' equity 0 Req B Inc Req B Bal Req B Stmt Stmt Req B Stmt SE Sheet 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 Net cash flow from operating activities 0 Cash flows from investing activities Cash flows from financing activities Inflow for issue of common stock Net change in cash Ending cash balance 0 H c. What is the net realizable value of the accounts receivable at December 31, Year 1