Required information [The following information applies to the questions displayed below.] Leach Incorporated 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 $35,000 of services and received cash. 4. Collected $35,000 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 6 percent. of the ending accounts receivable balance will be uncollectible.
Required information [The following information applies to the questions displayed below.] Leach Incorporated 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 $35,000 of services and received cash. 4. Collected $35,000 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 6 percent. of the ending accounts receivable balance will be uncollectible.
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 Incorporated 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 $35,000 of services and received cash.
4. Collected $35,000 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 6 percent
of the ending accounts receivable balance will be uncollectible.
Year 2:
1. Wrote off an uncollectible account for $2,640.
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 $32,000 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.
Note: Enter any decreases to account balances with a minus sign. Not all cells require input.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F89074166-0d4c-48e0-98e3-d9e259c46989%2F1677a364-e155-4477-9847-183e81bbd5fa%2Ffhvpwqb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Leach Incorporated 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 $35,000 of services and received cash.
4. Collected $35,000 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 6 percent
of the ending accounts receivable balance will be uncollectible.
Year 2:
1. Wrote off an uncollectible account for $2,640.
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 $32,000 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.
Note: Enter any decreases to account balances with a minus sign. Not all cells require input.
Transcribed Image Text:Required:
a. Organize the transaction data in accounts under an accounting equation.
Note: Enter any decreases to account balances with a minus sign. Not all cells require input.
Event
1.
2.
3.
4.
5.
6.
Balance
Cash
Assets
+
+
0+
NRV Accounts
Receivable
w
0=
LEACH INCORPORATED
Accounting Equation for Year 1
Equity
Liabilities
Common
Stock
+
+
+
+
0+
Retained
Earnings
0
Account Titles for Retained Earnings
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