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 $70,000 of services on account.
3. Provided $27,000 of services and received cash.
4. Collected $43,000 cash from accounts receivable.
5. Paid $22,000 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 be uncollectible.

Year 2:

1. Wrote off an uncollectible account for $730.
2. Provided $90,000 of services on account.
3. Provided $25,000 of services and collected cash.
4. Collected $72,000 cash from accounts receivable.
5. Paid $28,000 of salaries expense for the year.
6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts receivable balance will be uncollectible.

Exercise 7-7A 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?

d-1.

Organize the transaction data in accounts under an accounting equation for Year 2. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is no corresponding Retained Earnings input needed.)

D-1.

	LEACH INC. Accounting Equation for the Year 2 Event Assets = Liabilities + Equity Accounting Titles for Retained Earnings Cash + Accounts Receivable Allowance Common stock + Retained Earnings Bal. + = + + 1. + = + + 2. + = + + 3. + = + + 4. + = + + 5. + = + + 6. + = + + Bal. + = + +

D2.

Prepare an income statement for Year 2. (Round your intermediate calculations and final answers to the nearest whole dollar.)

LEACH INC. Income Statement For the Year Ended December 31, Year 2 Operating expenses Total operating expenses

D3.

Prepare the statement of changes in stockholders' equity for Year 2. (Round your intermediate calculations and final answers to the nearest whole dollar.)

	LEACH INC. Statement of Changes in Stockholders Equity For the Year Ended December 31, Year 2 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders equity

D4.

Prepare the balance sheet for Year 2. (Round your intermediate calculations and final answers to the nearest whole dollar.)

	LEACH INC. Balance Sheet As of December 31, Year 2 Assets ?? ?? ?? Total assets Liabilities Stockholders equity ?? ?? ?? Total stockholders equity Total liabilities and stockholders equity

D5.

Prepare the statement of cash flows for Year 2. (Round your intermediate calculations and final answers to the nearest whole dollar. Amounts to be deducted should be indicated with a minus sign.)

	LEACH INC. Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities ?? ?? ?? Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash ?? Ending cash balance

D6. What is the net realizable value of the accounts receivable at December 31, Year 2? (Round your intermediate calculations and final answer to the nearest whole dollar.)