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

Year 1:

1. Issued $26,000 of common stock for cash.
2. Provided $95,600 of services on account.
3. Provided $52,000 of services and received cash.
4. Collected $85,000 cash from accounts receivable.
5. Paid $54,000 of salaries expense for the year.
6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 4 percent of the ending accounts receivable balance will be uncollectible.
7. Closed the revenue account.
8. Closed the expense account.

Year 2:

1. Wrote off an uncollectible account for $750.
2. Provided $104,000 of services on account.
3. Provided $48,000 of services and collected cash.
4. Collected $97,000 cash from accounts receivable.
5. Paid $81,000 of salaries expense for the year.
6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 4 percent of the ending accounts receivable balance will be uncollectible.

Required:
a. Record the Year 1 events in general journal form and post them to T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

cash

common stock

account receivable

retained earrning

service revenue

allowance for doubtful accounts

salaries expence

uncoll accts expense

Answer 1

Answer-

Date	Account	Debit	Credit
Year 1
1	Cash	$ 26,000
1	Common Stock		$ 26,000
2	Accounts Receivable	$ 95,600
2	Service Revenue		$ 95,600
3	Cash	$ 52,000
3	Service Revenue		$ 52,000
4	Cash	$ 85,000
4	Accounts Receivable		$ 85,000
5	Salaries Expense	$ 54,000
5	Cash		$ 54,000
6	Bad Debt Expense	$ 424
6	Estimated allowance for uncollectible accounts		$ 424
	(95,600-85,000)*4%
7	Service Revenue (95,600+52,000)	$           147,600
7	Income Summary		$           147,600
	(to close revenue account)
8	Income Summary	$ 54,424
8	Salaries Expense		$ 54,000
8	Bad Debt Expense		$ 424
	(to close expense account)
9	Income Summary (147,600-$54,424)	$ 93,176
9	Retained Earning		$ 93,176
	(to close income summary account)

Accounts Receivable
Debit		Credit
2	$ 95,600	4	$ 85,000
Ending	$ 10,600
bad Debt Expense
Debit		Credit
6	$ 424	8	$ 424
Ending	$                -
Cash
Debit		Credit
1	$ 26,000	5	$ 54,000
3	$ 52,000
4	$ 85,000
Ending	$ 109,000
Common Stock
Debit		Credit
		1	$ 26,000
		Ending	$ 26,000
Estimated All for uncollectible acc
Debit		Credit
		1	$ 424
		Ending	$ 424
Salaries Expense
Debit		Credit
5	$ 54,000	8	$ 54,000
Service Revenue
Debit		Credit
2	$ 95,600	7	$       147,600
3	$ 52,000
Retained Earning
Debit		Credit
		9	$ 93,176
		Ending	$ 93,176
Income Summary
Debit		Credit
8	$ 54,424	7	$       147,600
9	$ 93,176