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Exercise $7-7$A $($Algo$)$ Effect of recognizing uncollectible accounts on the financial statements: Percent of receivables allowance method LO $7-2$

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

Year $1$:

$1.$ Issued $\backslash (\backslash$$ $10,000\backslash )$ of common stock for cash.

$2.$ Provided $\backslash (\backslash$$ $80,000\backslash )$ of services on account.

$3.$ Provided $\backslash (\backslash$$ $25,000\backslash )$ of services and received cash.

$4.$ Collected $\backslash (\backslash$$ $55,000\backslash )$ cash from accounts receivable.

$5.$ Paid $\backslash (\backslash$$ $18,000\backslash )$ 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 be uncollectible.

Year $2$:

$1.$ Wrote off an uncollectible account for $\backslash (\backslash$$ $660\backslash ).$

$2.$ Provided $\backslash (\backslash$$ $100,000\backslash )$ of services on account.

$3.$ Provided $\backslash (\backslash$$ $30,000\backslash )$ of services and collected cash.

$4.$ Collected $\backslash (\backslash$$ $82,000\backslash )$ cash from accounts receivable.

$5.$ Paid $\backslash (\backslash$$ $30,000\backslash )$ of salaries expense for the year.

$6.$ Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that $7$ percent of the ending accounts receivable balance will be uncollectible.

Exercise $7-7$A $($Algo$)$ Part d

d$-1.$ Organize the transaction data in accounts under an accounting equation for Year $2.$

d$-2.$ Prepare an income statement for Year $2.$

d$-3.$ Prepare the statement of changes in stockholders' equity for Year $2.$

d$-4.$ Prepare the balance sheet for Year $2.$

d$-5.$ Prepare the statement of cash flows for Year $2.$

d$-6.$ What is the net realizable value of the accounts receivable at December $31,$ Year $2?$ Exercise $7-7$A $($Algo$)$ Part d

d$-1.$ Organize the transaction data in accounts under an accounting equation for Year $2.$

d$-2.$ Prepare an income statement for Year $2.$

d$-3.$ Prepare the statement of changes in stockholders' equity for Year $2.$

d$-4.$ Prepare the balance sheet for Year $2.$

d$-5.$ Prepare the statement of cash flows for Year $2.$

d$-6.$ What is the net realizable value of the accounts receivable at December $31,$ Year $2?$

Complete this question by entering your answers in the tabs below.

Organize the transaction data in accounts under an accounting equation for Year $2.$

Note: Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed. Round your answers up to the nearest whole dollar. Exercise $7-7$A $($Algo$)$ Part d

d$-1.$ Organize the transaction data in accounts under an accounting equation for Year $2.$

d$-2.$ Prepare an income statement for Year $2.$

d$-3.$ Prepare the statement of changes in stockholders' equity for Year $2.$

d$-4.$ Prepare the balance sheet for Year $2.$

d$-5.$ Prepare the statement of cash flows for Year $2.$

d$-6.$ What is the net realizable value of the accounts receivable at December $31,$ Year $2?$

Complete this question by entering your answers in the tabs below.

Req D$1$

Req D$2$

Req D$3$

Prepare an income statement for Year $2.$

Note: Round your intermediate calculations and final answers to the nearest whole dollar. d$-1.$ Organize the transaction data in accounts under an accounting equation for Year $2.$

d$-2.$ Prepare an income statement for Year $2.$

d$-3.$ Prepare the statement of changes in stockholders' equity for Year $2.$

d$-4.$ Prepare the balance sheet for Year $2.$

d$-5.$ Prepare the statement of cash flows for Year $2.$

d$-6.$ What is the net realizable value of the accounts receivable at December $31,$ Year $2?$

Complete this question by entering your answers in the tabs below.

Req D$2$

Req D$3$

Req D$4$

Req D$5$

Req D$6$

Prepare the statement of changes in stockholders' equity for Year $2.$

Note: Round your intermediate calculations and final answers to the nearest whole dollar. d$-1.$ Organize the transaction data in accounts under an accounting equation for Year $2.$

d$-2.$ Prepare an income statement for Year $2.$

d$-3.$ Prepare the statement of changes in stockholders' equity for Year $2.$

d$-4.$ Prepare the balance sheet for Year $2.$

d$-5.$ Prepare the statement of cash flows for Year $2.$

d$-6.$ What is the net realizable value of the accounts receivable at December $31,$ Year $2?$

Complete this question by entering your answers in the tabs below.

Req D$1$

Req D$2$

Req D$3$

Req D$4$

Req D$5$

Prepare the balance sheet for Year $2.$

Note: Round your intermediate calculations and final answers to the nearest whole dollar.

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}$

$\backslash$hline $\backslash$multicolumn$\{1\}\{|$c$|\}\{$ LEACH INCORPORATED $\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{1\}\{|$c$|\}\{$ Balance Sheet $\}\backslash \backslash$

$\backslash$hline Assets & & $\backslash \backslash$

$\backslash$hline & & $\backslash \backslash$

$\backslash$hline & & $\backslash \backslash$

$\backslash$hline & & $\backslash \backslash$

$\backslash$hline Total assets & & $\backslash \backslash$

$\backslash$hline Liabilities & & $\backslash \backslash$

$\backslash$hline Stockholders' equity & & $\backslash \backslash$

$\backslash$hline & & $\backslash \backslash$

$\backslash$hline & & $\backslash \backslash$

$\backslash$hline & & $\backslash \backslash$

$\backslash$hline Total stockholders' equity & & $\backslash \backslash$

$\backslash$hline Total liabilities and stockholders' equity & & $\backslash \backslash$

$\backslash$hline $\backslash$hline

$\backslash$end$\{$tabular$\}$