Reference no: EM133009517

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 $60,000 of services on account.
• Provided $25,000 of services and received cash.
• Collected $35,000 cash from accounts receivable.
• Paid $20,000 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 an uncollectible account for $2,700.
• Provided $80,000 of services on account.
• Provided $20,000 of services and collected cash.
• Collected $62,000 cash from accounts receivable.
• Paid $30,000 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

Problem a. Organize the transaction data in accounts under an accounting equation.