740 Help Save & Exit Required information The following information applies to t

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740 Help Save & Exit 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. 4 of 4 1 Issued $10,000 of common stock for cash. 2. Provided $110,000 of services on account 3. Provided $25,000 of services and received cash. 4. Collected $85,000 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 8 per cent of the ending accounts receivable balance will be uncollectible. 2019 1. Wrote off an uncollectible account for $740 2. Provided $130,000 of services on account 3. Provided $30,000 of services and collected cash. 4. Collected $112,000 cash from accounts receivable 5. Pald $22,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year Leach estimates that 8 percent of th e ending accounts receivable balance will be uncollectible e the transaction data in accounts under an accounting equation for 2019. d-2. Prepare an income statement for 2019 d-3. Prepare the statement of changes in stockholders' equity for 2019 d-4. Prepare the balance sheet for 2019 d-5. Prepare the statement of cash flows for 2019 d-6. What is the net realizable value of the accounts receivable at December 31, 2019? Complete this question by entering your answers in the tabs below. Prev6of 9Next> SAMSUNG

Explanation / Answer

1 LEACH INC Accounting Equation for the Year 2019 Event Assets Liabilities + Equity Cash + Accounts Receivable - Allowance = Common Stock + Retained Earnings Accounting Titles for Retained Earnings Bal $100,000 $25,000 $2,000 $10,000 $113,000 1 ($740) ($740) 2 $130,000 $130,000 Service Revenue 3 $30,000 $30,000 Service Revenue 4 $112,000 ($112,000) 5 ($22,000) ($22,000) Salary Expense 6 $3,381 ($3,381) Bad Debt Expense Bal $220,000 $42,260 $4,641 $10,000 $247,619 Opening Bal Cash 10000+25000+85000-20000 Accounts Receivable 110000-85000 Allowance 25000*8% Common Stock 10000 Retained Earnings 110000+25000-20000-2000 Accounts Receivable $42260*8% 2 Leach Inc Income Statement For the Year Ended December 31, 2019 Service Revenue $160,000 Operating Expenses Salary Expense $22,000 Bad Debt Expense $3,381 Total Operating Expenses $25,381 Net Income $134,619 3 Leach Inc Statement of Changes in Stockholders Equity For the Year Ended December 31, 2019 Beginning Common Stock $10,000 Additions 0 Ending Common Stock $10,000 Beginning Retained Earnings $113,000 Add : Net Income, 2019 $134,619 Ending Retained Earnings $247,619 Total Stockholders Equity $257,619 4 Leach Inc Balance Sheet As of December 31, 2019 Assets Cash $220,000 Accounts Receivable $42,260 Less : Allowances $4,641 Accounts Receivable, net $37,619 Total Assets $257,619 Liabilities Stockholders Equity Common Stock $10,000 Retained Earnings $247,619 Total Stockholders Equity $257,619 Total Liabilities and stockholders equity $257,619 5 Leach Inc Statement of Cash flows For the Year Ended December 31, 2019 Cash flows from Operating activities Net Income, 2019 $134,619 Add: Non Cash Items Increase in allowances $2,641 (4641-2000) Increase in accounts Receivable -17260 (25000-42260) Net Cash flow from operating activities $120,000 Cash flows from investing activities 0 Cash flows from financing activities 0 Net Change in Cash $120,000 Beginning Cash Balance $100,000 Ending Cash Balance $220,000 6 Net Realisable Value of accounts Receivable $37,619

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