Leach Inc. experienced the following events for the first two years of its operations: Year 1:Issued $10,000 of common stock for cash.Provided $70,000 of services on account.Provided $29,000 of services and received cash.Collected $41,000 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 7 percent of the ending accounts receivable balance will be uncollectible. Year 2:Wrote off an uncollectible account for $730.Provided $90,000 of services on account.Provided $25,000 of services and collected cash.Collected $72,000 cash 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 7 percent of the ending accounts receivable balance will be uncollectible. 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 $70,000 of services on account.3. Provided $29,000 of services and received cash.4. Collected $41.000 cash from accounts receivable.5. Paid $22,000 of salaries expense for the year.6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 7 percentof the ending accounts receivable balance will be uncollectible.Year 2:1. Wrote off an uncollectible account for $730.2. Provided $90,000 of services on account.3. Provided $25,000 of services and collected cash.4. Collected $72.000 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 7 percent of theending accounts receivable balance will be uncollectible.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 2d-4. Prepare the balance sheet for Year 2.d-5. Prepare the statement of cash flows for Year 2d-6. What is the net realizable value of the accounts receivable at December 31, Year 2? Reg D1Reg D2Reg D3Reg D4Req D5Req D6Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effecton the Accounts Titles for Retained Earnings, leave the cell blank. Round your answers to the nearest whole dollar.)LEACH INC.Accounting Equation for the Year 2AssetsEquityAccounting Titles for RetainedEarningsEventNRV AccountsLiabilitiesCommonRetainedCashReceivableStockEarningsBal.94,000 +28,830 =112,8301.2.120,000 =120,000 Service revenue30,000+30,000 Service revenue3.4.102,000 +(102,000) =5.(24,000) +(24,000) Salaries expense6.(3,383)(3,383) Other operating expensesBal.202,000 +43,447|=235,447< Req D1Req D2 >++++++ ++ ++ + +

Financial Statements - Financial Statements includes income Statement, Statement of Stockholder's…

Answered: Leach Inc. experienced the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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

Year 1:

Issued $10,000 of common stock for cash.
Provided $70,000 of services on account.
Provided $29,000 of services and received cash.
Collected $41,000 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 7 percent of the ending accounts receivable balance will be uncollectible.

Year 2:

Wrote off an uncollectible account for $730.
Provided $90,000 of services on account.
Provided $25,000 of services and collected cash.
Collected $72,000 cash 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 7 percent of the ending accounts receivable balance will be uncollectible.

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 $70,000 of services on account.
3. Provided $29,000 of services and received cash.
4. Collected $41.000 cash from accounts receivable.
5. Paid $22,000 of salaries expense for the year.
6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 7 percent
of the ending accounts receivable balance will be uncollectible.
Year 2:
1. Wrote off an uncollectible account for $730.
2. Provided $90,000 of services on account.
3. Provided $25,000 of services and collected cash.
4. Collected $72.000 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 7 percent of the
ending accounts receivable balance will be uncollectible.
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?

Reg D1
Reg D2
Reg D3
Reg D4
Req D5
Req D6
Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect
on the Accounts Titles for Retained Earnings, leave the cell blank. Round your answers to the nearest whole dollar.)
LEACH INC.
Accounting Equation for the Year 2
Assets
Equity
Accounting Titles for Retained
Earnings
Event
NRV Accounts
Liabilities
Common
Retained
Cash
Receivable
Stock
Earnings
Bal.
94,000 +
28,830 =
112,830
1.
2.
120,000 =
120,000 Service revenue
30,000+
30,000 Service revenue
3.
4.
102,000 +
(102,000) =
5.
(24,000) +
(24,000) Salaries expense
6.
(3,383)
(3,383) Other operating expenses
Bal.
202,000 +
43,447|=
235,447
< Req D1
Req D2 >
+++
++
+ ++ ++ + +

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