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: 2018: 1. Issued $10,000 of common stock for cash. 2. Provided $100,000 of services on account. 3. Provided $35,000 of services and received cash. 4. Collected $65,000 cash from accounts receivable. 5. Paid $14,000 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. 2019: 1. Wrote off an uncollectible account for $750. 2. Provided $120,000 of services on account. 3. Provided $30,000 of services and collected cash. 4. Collected $102,000 cash from accounts receivable. 5. Paid $20,000 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. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank.) LEACH INC. Accounting Equation for the Year 2018 Assets Equity Accounting Titles for Retained Earnings Event Liabilities Accounts Receivable Common stock Retained Cash Allowance Earnings 1. 2. 3. 4. 5. 6. Bal.
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: 2018: 1. Issued $10,000 of common stock for cash. 2. Provided $100,000 of services on account. 3. Provided $35,000 of services and received cash. 4. Collected $65,000 cash from accounts receivable. 5. Paid $14,000 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. 2019: 1. Wrote off an uncollectible account for $750. 2. Provided $120,000 of services on account. 3. Provided $30,000 of services and collected cash. 4. Collected $102,000 cash from accounts receivable. 5. Paid $20,000 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. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank.) LEACH INC. Accounting Equation for the Year 2018 Assets Equity Accounting Titles for Retained Earnings Event Liabilities Accounts Receivable Common stock Retained Cash Allowance Earnings 1. 2. 3. 4. 5. 6. Bal.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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:
2018:
1. Issued $10,000 of common stock for cash.
2. Provided $100,000 of services on account.
3. Provided $35,000 of services and received cash.
4. Collected $65,000 cash from accounts receivable.
5. Paid $14,000 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.
2019:
1. Wrote off an uncollectible account for $750.
2. Provided $120,000 of services on account.
3. Provided $30,000 of services and collected cash.
4. Collected $102,000 cash from accounts receivable.
5. Paid $20,000 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd10f884b-6753-44fe-997f-af50a8e0d0d1%2F290da6a2-dcb6-474f-a80c-5200cbcc90c0%2Fl57eu0o.png&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:
2018:
1. Issued $10,000 of common stock for cash.
2. Provided $100,000 of services on account.
3. Provided $35,000 of services and received cash.
4. Collected $65,000 cash from accounts receivable.
5. Paid $14,000 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.
2019:
1. Wrote off an uncollectible account for $750.
2. Provided $120,000 of services on account.
3. Provided $30,000 of services and collected cash.
4. Collected $102,000 cash from accounts receivable.
5. Paid $20,000 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.
Transcribed Image Text:Required
a. 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.)
LEACH INC.
Accounting Equation for the Year 2018
Assets
Equity
Accounting Titles for Retained
Earnings
Event
Liabilities
Accounts
Receivable
Common
stock
Retained
Cash
Allowance
Earnings
1.
2.
3.
4.
5.
6.
Bal.
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