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Part $2$ of $4$

Required information

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Leach Incorporated 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 receivable balance will be uncollectible.

Closed the revenue account.

Closed the expense accounts.

Year $2$:

Wrote off an uncollectible account for $$650.$

Provided $$88,000$ of services on account.

Provided $$32,000$ of services and collected cash.

Collected $$81,000$ cash from accounts receivable.

Paid $$65,000$ of salaries expense for the year.

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.

Closed the revenue account.

Closed the expense accounts.

b$.$ Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year $1.$

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

Req B$1$

Req B$2$

Req B$3$

Req B$4$

Prepare the income statement for Year $1.$

$\backslash$table$[[$LEACH INCORPORATED$],[$Income Statement,$],[$For the Year Ended December $31,$ Year $1,],[$Operating expenses,$],[,],[,]]$