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Leach Inc. | ||||||||||
Year 1 | Asset | = | Liabilities | Equity | Account title for Retained Earnings | |||||
Event | Cash | + | NRV Accounts Receivable | = | + | Common Stock | + | Retained Earnings | ||
Balance | + | = | + | + | ||||||
1. | 10,000.00 | + | = | + | 10,000.00 | + | ||||
2. | + | 100,000.00 | = | + | + | 100,000.00 | Service Revenue | |||
3. | 31,000.00 | + | = | + | + | 31,000.00 | Service Revenue | |||
4. | 69,000.00 | + | (69,000.00) | = | + | + | ||||
5. | (16,000.00) | + | + | + | (16,000.00) | Salaries Expense | ||||
6. | + | (2,170.00) | + | + | (2,170.00) | Other operating expense | ||||
End Bal. | 94,000.00 | + | 28,830.00 | = | + | 10,000.00 | + | 112,830.00 |
Calculation of uncollectible amount | Amount $ |
Account receivable closing | 31,000.00 |
Uncollectible % | 7.00% |
Uncollectible amount for year 1 | 2,170.00 |
Income Statement | Amount $ | Amount $ |
Service Revenue | 131,000.00 | |
Operating expense | ||
Salaries Expense | 16,000.00 | |
Bad debt expense | 2,170.00 | |
Total Operating expense | 18,170.00 | |
Net Income | 112,830.00 | |
Statement of changes in Stockholder's Equity | Amount $ | Amount $ |
Beginning Common Stock | 10,000.00 | |
Add: Common Stock issued | - | |
Ending Common Stock | 10,000.00 | |
Beginning Retained Earnings | - | |
Add: Net Income | 112,830.00 | |
Ending Retained Earnings | 112,830.00 | |
Total Stockholder's Equity | 122,830.00 | |
Balance Sheet | Amount $ | Amount $ |
Assets | ||
Cash | 94,000.00 | |
Accounts Receivable | 31,000.00 | |
Allowance for uncollectible accounts | (2,170.00) | |
Total Assets | 122,830.00 | |
Liabilities | - | |
Stockholder's Equity | ||
Common Stock | 10,000.00 | |
Retained Earnings | 112,830.00 | |
Total Stockholder's Equity | 122,830.00 | |
Total Liabilities & Stockholder's Equity | 122,830.00 | |
Statement of cash flows | Amount $ | Amount $ |
Cash flow from operating activities | ||
Cash sales | 31,000.00 | |
Inflow from customers | 69,000.00 | |
Payment for salaries | (16,000.00) | |
Net Cash flow from operating activities | 84,000.00 | |
Cash flow from investing activities | - | |
Cash flow from financing activities | ||
Common stock issued | 10,000.00 | |
Cash flow from financing activities | 10,000.00 | |
Net Change in cash | 94,000.00 | |
Add: Beginning cash balance | - | |
Ending cash balance | 94,000.00 |
Net realizable value of Accounts Receivable | Amount $ |
Accounts Receivable | 31,000.00 |
Less: Allowance for uncollectible accounts | 2,170.00 |
Net realizable value of Accounts Receivable | 28,830.00 |
Leach Inc. experienced the following events for the first two years of its operations: Year 1:...
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 $100,000 of services on account. 3. Provided $31,000 of services and received cash. 4. Collected $69,000 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 7 percent of the ending accounts receivable balance will...
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...
Leach Inc. experienced the following events for the first two years of its operations: Year 1: Issued $10,000 of common stock for cash. Provided $80,000 of services on account. Provided $35,000 of services and received cash. Collected $45,000 cash from accounts receivable. Paid $18,000 of salaries expense for the year. 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. Year 2: Wrote off...
one big problem thanks you! Leach Inc, experienced the following events for the first two years of its operations: 2018 1. Issued $10,000 of common stock for cash 2. Provided $90,000 of services on account. 3. Provided $27,000 of services and received cash. 4. Collected $63,000 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...
Leach Inc. experienced the following events for the first two years of its operations: Year 1: Issued $15,000 of common stock for cash. Provided $83,500 of services on account. Provided $41,000 of services and received cash. Collected $74,000 cash from accounts receivable. Paid $43,000 of salaries expense for the year. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts receivable balance will be uncollectible. Closed the revenue account....
[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: Issued $10,000 of common stock for cash. Provided $78,000 of services on account. Provided $36,000 of services and received cash. Collected $69,000 cash from accounts receivable. Paid $38,000 of salaries expense for the year. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts...
Leach Inc. experienced the following events for the first two years of its operations: Year 1: 1. Issued $11,000 of common stock for cash. 2. Provided $79,100 of services on account. 3. Provided $37,000 of services and received cash. 4. Collected $70,000 cash from accounts receivable. 5. Paid $39,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts receivable balance will...
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:Issued $12,000 of common stock for cash.Provided $80,200 of services on account.Provided $38,000 of services and received cash.Collected $71,000 cash from accounts receivable.Paid $40,000 of salaries expense for the year.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.Closed the revenue account.Closed...
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: Issued $10,000 of common stock for cash. Provided $100,000 of services on account. Provided $27,000 of services and received cash. Collected $73,000 cash from accounts receivable. Paid $18,000 of salaries expense for the year. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 9 percent of the ending...
[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 $78,000 of services on account. 3. Provided $36,000 of services and received cash. 4. Collected $69,000 cash from accounts receivable. 5. Paid $38,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that...