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 $16,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncolle of the ending accounts receivable balance will be
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 $16,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncolle of the ending accounts receivable balance will be
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Answer only please.
![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 $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 $16,000 of salaries expense for the year.
6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 8 percent
of the ending accounts receivable balance will be uncollectible.
Year 2:
1. Wrote off an uncollectible account for $730.
2. Provided $100,000 of services on account.
3. Provided $20,000 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 8 percent of the
ending accounts receivable balance will be uncollectible.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbac5cd56-9885-4a25-8e51-dfc1bb78a29e%2Fd1d63b13-33ad-45e8-a185-5d7210b97b1c%2Fyzasozf_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $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 $16,000 of salaries expense for the year.
6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 8 percent
of the ending accounts receivable balance will be uncollectible.
Year 2:
1. Wrote off an uncollectible account for $730.
2. Provided $100,000 of services on account.
3. Provided $20,000 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 8 percent of the
ending accounts receivable balance will be uncollectible.
Transcribed Image Text:U. Aujusteu lhe acEsunts to retlect uncollectible accounts expense for the year. Leach estimates that 8 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
Assets
Equity
Accounting Titles for Retained
Earnings
Event
Accounts
Liabilities
Common
Retained
Cash
Allowance
Receivable
stock
Earnings
1.
2.
+
3.
4.
5.
+
6.
Bal.
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