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 $25,000 of services and received cash. 4. Collected $55,000 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 8 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 $80,000 of services on account. 3. Provided $25,000 of services and received cash. 4. Collected $55,000 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 8 percent of the ending accounts receivable balance will be uncollectible.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement
Section: Chapter Questions
Problem 36P
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![Required information
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Leach Inc. experienced the following events for the first two years of its operations:
Part 2 of 4
Year 1:
1. Issued $10,000 of common stock for cash.
2. Provided $80,000 of services on account.
3. Provided $25,000 of services and received cash.
4. Collected $55,000 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 8 percent
of the ending accounts receivable balance will be uncollectible.
oints
eBook
Year 2:
1. Wrote off an uncollectible account for $730.
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 $30,000 of salaries expense for the year.
6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 8 percent of the
ending accounts receivable balance will be uncollectible.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbac5cd56-9885-4a25-8e51-dfc1bb78a29e%2F2335eb5a-aadc-4457-bd9f-842e9b7e79af%2Fjf5a8mv_processed.jpeg&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:
Part 2 of 4
Year 1:
1. Issued $10,000 of common stock for cash.
2. Provided $80,000 of services on account.
3. Provided $25,000 of services and received cash.
4. Collected $55,000 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 8 percent
of the ending accounts receivable balance will be uncollectible.
oints
eBook
Year 2:
1. Wrote off an uncollectible account for $730.
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 $30,000 of salaries expense for the year.
6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 8 percent of the
ending accounts receivable balance will be uncollectible.
Transcribed Image Text:b. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1.
Part 2 of 4
Complete this question by entering your answers in the tabs below.
10
Reg B Bal
Sheet
Reg B Stmt
Cash Flows
points
Reg B Inc
EReg B Stmt SE
Stmt
Prepare an income statement for Year 1.
eBook
LEACH INC.
Income Statement
For the Year Ended December 31, Year 1
Operating expenses
Total operating expenses
Reg B inc Strmt
Req B Stmt SE
>
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