Question

[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 $29,000 of services and received cash.
4. Collected $51,000 cash from accounts receivable.
5. Paid $20,000 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 $2,530.
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 $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.

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 require input.)

b. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Year 1.

c. What is the net realizable value of the accounts receivable at December 31, Year 1?

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?

Answer 1

i need your support please supportsupport me and for any query comment me.