Year 2: 1. Wrote off an uncollectible account for $660. 2. Provided $120,000 of services on account. 3. Provided $25,000 of services and collected cash. 4. Collected $102,000 cash from accounts receivable. 5. Paid $26,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 7 percent of the ending accounts receivable balance will be uncollectible. d-1. Organize the transaction data in accounts under an accounting equation for Year 2. 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? Net realizable value \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ LEACH INCORPORATED } \\ \hline \multicolumn{3}{|c|}{ Statement of Changes in Stockholders' Equity } \\ \hline \multicolumn{3}{|c|}{ For the Year Ended December 31, Year 2} \\ \hline \multicolumn{3}{|l|}{ Beginning common stock } \\ \hline \\ \hline Ending common stock & $ & 0 \\ \hline \multicolumn{3}{|l|}{ Beginning retained earnings } \\ \hline & & \\ \hline Ending retained earnings & & 0 \\ \hline Total stockholders' equity & $ & 0 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ SEACH INCORPORATED } \\ \hline \multicolumn{2}{|c|}{ For the Year Ended December 31, Year 2 } \\ \hline Cash flows from operating activities & & \\ \hline & & \\ \hline & & \\ \hline Net cash flow from operating activities & & $ \\ \hline Cash flows from investing activities & & \\ \hline Cash flows from financing activities & & \\ \hline Net change in cash & & \\ \hline & & \\ \hline Ending cash balance & & $ \\ \hline \hline \end{tabular} LEACH INCORPORATED Balance Sheet As of December 31, Year 2 \begin{tabular}{|l|l|r|} \hline Assets & & \\ \hline Cash & & \\ \hline Accounts receivable & & \\ \hline Less: Allowance for doubtful accounts & & \\ \hline Total assets & & \\ \hline Liabilities & & \\ \hline Stockholders' equity & & \\ \hline Common stock & & \\ \hline Retained earnings & & \\ \hline & & \\ \hline Total stockholders' equity & & \\ \hline Total liabilities and stockholders' equity & $ & 0 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{11}{|c|}{ LEACH INCORPORATED } \\ \hline \multicolumn{11}{|c|}{ Accounting Equation for Year 2} \\ \hline \multirow[b]{2}{*}{ Event } & \multicolumn{3}{|r|}{ Assets } & \multirow[b]{2}{*}{=} & \multirow[b]{2}{*}{ Liabilities } & \multirow[b]{2}{*}{+} & \multicolumn{3}{|c|}{ Stockholders' Equity } & \multirow[b]{2}{*}{ Account Titles for Retained Earnings } \\ \hline & Cash & + & \begin{tabular}{l} Net Realizable Value of \\ Accounts Receivable \end{tabular} & & & & \begin{tabular}{l} Common \\ Stock \end{tabular} & + & \begin{tabular}{l} Retained \\ Earnings \end{tabular} & \\ \hline Balance & & + & & = & & + & P & + & & \\ \hline 1. & & + & & = & & + & & + & & \\ \hline 2. & & + & & = & & + & & + & & 7 \\ \hline 3. & & + & & = & & + & & + & & 7 \\ \hline 4. & & + & & = & & + & & + & & 7 \\ \hline 5. & & + & & = & & + & & + & & \\ \hline 6. & & + & & = & & + & & + & & \\ \hline Balance & 0 & + & 0 & = & 0 & + & 0 & + & 0 & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ LEACH INCORPORATED } \\ \hline \multicolumn{2}{|c|}{ Income Statement } \\ \hline For the Year Ended December 31, Year 2 \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total operating expenses & & \\ \hline & & \\ \hline \end{tabular} Year 2: 1. Wrote off an uncollectible account for $660. 2. Provided $120,000 of services on account. 3. Provided $25,000 of services and collected cash. 4. Collected $102,000 cash from accounts receivable. 5. Paid $26,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 7 percent of the ending accounts receivable balance will be uncollectible. d-1. Organize the transaction data in accounts under an accounting equation for Year 2. 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? Net realizable value \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ LEACH INCORPORATED } \\ \hline \multicolumn{3}{|c|}{ Statement of Changes in Stockholders' Equity } \\ \hline \multicolumn{3}{|c|}{ For the Year Ended December 31, Year 2} \\ \hline \multicolumn{3}{|l|}{ Beginning common stock } \\ \hline \\ \hline Ending common stock & $ & 0 \\ \hline \multicolumn{3}{|l|}{ Beginning retained earnings } \\ \hline & & \\ \hline Ending retained earnings & & 0 \\ \hline Total stockholders' equity & $ & 0 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ SEACH INCORPORATED } \\ \hline \multicolumn{2}{|c|}{ For the Year Ended December 31, Year 2 } \\ \hline Cash flows from operating activities & & \\ \hline & & \\ \hline & & \\ \hline Net cash flow from operating activities & & $ \\ \hline Cash flows from investing activities & & \\ \hline Cash flows from financing activities & & \\ \hline Net change in cash & & \\ \hline & & \\ \hline Ending cash balance & & $ \\ \hline \hline \end{tabular} LEACH INCORPORATED Balance Sheet As of December 31, Year 2 \begin{tabular}{|l|l|r|} \hline Assets & & \\ \hline Cash & & \\ \hline Accounts receivable & & \\ \hline Less: Allowance for doubtful accounts & & \\ \hline Total assets & & \\ \hline Liabilities & & \\ \hline Stockholders' equity & & \\ \hline Common stock & & \\ \hline Retained earnings & & \\ \hline & & \\ \hline Total stockholders' equity & & \\ \hline Total liabilities and stockholders' equity & $ & 0 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{11}{|c|}{ LEACH INCORPORATED } \\ \hline \multicolumn{11}{|c|}{ Accounting Equation for Year 2} \\ \hline \multirow[b]{2}{*}{ Event } & \multicolumn{3}{|r|}{ Assets } & \multirow[b]{2}{*}{=} & \multirow[b]{2}{*}{ Liabilities } & \multirow[b]{2}{*}{+} & \multicolumn{3}{|c|}{ Stockholders' Equity } & \multirow[b]{2}{*}{ Account Titles for Retained Earnings } \\ \hline & Cash & + & \begin{tabular}{l} Net Realizable Value of \\ Accounts Receivable \end{tabular} & & & & \begin{tabular}{l} Common \\ Stock \end{tabular} & + & \begin{tabular}{l} Retained \\ Earnings \end{tabular} & \\ \hline Balance & & + & & = & & + & P & + & & \\ \hline 1. & & + & & = & & + & & + & & \\ \hline 2. & & + & & = & & + & & + & & 7 \\ \hline 3. & & + & & = & & + & & + & & 7 \\ \hline 4. & & + & & = & & + & & + & & 7 \\ \hline 5. & & + & & = & & + & & + & & \\ \hline 6. & & + & & = & & + & & + & & \\ \hline Balance & 0 & + & 0 & = & 0 & + & 0 & + & 0 & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ LEACH INCORPORATED } \\ \hline \multicolumn{2}{|c|}{ Income Statement } \\ \hline For the Year Ended December 31, Year 2 \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total operating expenses & & \\ \hline & & \\ \hline \end{tabular}