Certainly! Here is the transcribed text for an educational website: --- ### Required Information *(The following information applies to the questions displayed below.)* The following transactions apply to Jova Company for Year 1, the first year of operation: 1. Issued $15,500 of common stock for cash. 2. Recognized $64,500 of service revenue earned on account. 3. Collected $57,600 from accounts receivable. 4. Paid operating expenses of $36,000. 5. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. The following transactions apply to Jova for Year 2: 1. Recognized $72,000 of service revenue on account. 2. Collected $65,600 from accounts receivable. 3. Determined that $890 of the accounts receivable were uncollectible and wrote them off. 4. Collected $300 of an account that had previously been written off. 5. Paid $40,000 cash for operating expenses. 6. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1.0 percent of sales on account. **Required:** Complete the following requirements for Year 1 and Year 2. Complete all requirements for Year 1 prior to beginning the requirements for Year 2. --- There are no graphs or diagrams present in the image. On an educational website for accounting, the following table is presented to illustrate the accounting equation for Jova Company for Year 1. Each transaction impacts the company's assets, liabilities, and equity: ### Jova Company: Accounting Equation for Year 1 #### Table Layout **Columns:** 1. Event 2. Assets: - Cash - NRV Accounts Receivable 3. Liabilities 4. Equity: - Common Stock - Retained Earnings 5. Accounting Titles for Retained Earnings #### Event Details: 1. **Beginning Balance:** - Cash: $15,500 - Common Stock: $15,500 2. **Event 1:** - Cash: Increase by $64,500 (Total: $80,000) - NRV Accounts Receivable: $64,500 - Accounting Titles: Service revenue 3. **Event 2:** - NRV Accounts Receivable: Decrease by $57,600 (Total: $6,900) 4. **Event 3:** - Cash: Decrease by $36,000 (Total: $44,000) - Accounting Titles: Operating expenses 5. **Event 4:** - Cash: Decrease by $1,290 (Total: $42,710) - Accounting Titles: Uncollectible accounts expense 6. **Final Balance:** - Cash: $37,100 - NRV Accounts Receivable: $6,900 - Liabilities: $0 - Common Stock: $15,500 - Retained Earnings: $27,210 This table provides a detailed overview of how each event affects the financial position of Jova Company, reflecting changes in assets, liabilities, and equity throughout Year 1.