Reference no: EM132560165
Question - 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 $70,000 of services on account.
3. Provided $31,000 of services and received cash.
4. Collected $39,000 cash from accounts receivable.
5. Paid $12,000 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 accounts receivable balance will be uncollectible.
2019:
1. Wrote off an uncollectible account for $650.
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 $26,000 of salaries expense for the year.
6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 8 percent of the ending accounts receivable balance will be uncollectible.
Required - Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank.)