50.1K

Verified Solution

Link Copied!

for year 1 only

Check my w Leach Inc, experienced the following events for the first two years of its operations: Year 1: 1. Issued $16,000 of common stock for cash. 2. Provided $84,600 of services on account. 3. Provided $42,000 of services and received cash. 4. Collected $75,000 cash from accounts receivable. 5. Paid $44,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year Leach estimates that 5 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 $720 2. Provided $94,000 of services on account 3. Provided $38,000 of services and collected cash 4. Collected $87,000 cash from accounts receivable. 5. Paid $71,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible. Required information Cash Common Stock Beg. Bal. 1 Beg. Bal. 44,000 5. 16,00011. 3. 4 16,000 42,000 75,000 End, Bal. 16,000 End. Bal. 89,000 Accounts Receivable Retained Earnings Beg. Bal 2. 84.600 $ 75,000 4. Beg Bal Bd 18 d. 126.000 7 cl. 44,000 480 End. Bal 9,600 End. Bal. 81520 Allowance for Doubtful Accounts Service Revenue Beg Bal. Beg. Bal 7 cl. 4806 126,000 84,6002 42.000 3 End Ral 480 Allowance for Doubtful Accounts Service Revenue Beg. Bal. Beg. Bal. 4806 7 cl. 126,000 84,600 2. 42,0003 End. Bal 480 Bal 600 End. Bal 600 Uncoll. Accts. Expense Salaries Expense Beg Bal 6 480 Beg Bal 5 $ 48018 cl 44,000 $ 44,00018 cl Bal Bal End. Bal End. Bal

Answer & Explanation Solved by verified expert

See Answer