Required information[The following information applies to the questions displayed below.]The following transactions apply to Jova Company for 2018, the first year of operation:1. Issued $10,000 of common stock for cash.2. Recognized $210,000 of service revenue earned on account.3. Collected $162,000 from accounts receivable.4. Paid operating expenses of $125,000.5. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting foruncollectible accounts and estimates that uncollectible accounts expense will be 1 percent of sales on account.The following transactions apply to Jova for 2019:1. Recognized $320,000 of service revenue on account.2. Collected $335,000 from accounts receivable.3. Determined that $2,150 of the accounts receivable were uncollectible and wrote them off.4. Collected $800 of an account that had previously been written off.5. Paid $205,000 cash for operating expenses.6. Adjusted the accounts to recognize uncollectible accounts expense for 2019. Jova estimates uncollectible accountsexpense will be 0.5 percent of sales on account.RequiredComplete the following requirements for 2018 and 2019. Complete all requirements for 2018 prior to beginning therequirements for 2019.b. Show the effect of each transaction on the elements of the financial statements, using a horizontal statements model like the oneshown here. Use + for increase and – for decrease; leave the cell blank if there is no effect. Also, in the Cash Flow column, indicatewhether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). The first transaction is entered as anexample. (Hint Closing entries do not affect the statements model.) (If there is no effect on the Statement of Cash Flow, leave thecell blank.) b. Show the effect of each transaction on the elements of the financial statements, using a horizontal statements model like the oneshown here. Use + for increase and – for decrease; leave the cell blank if there is no effect. Also, in the Cash Flow column, indicatewhether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). The first transaction is entered as anexample. (Hint Closing entries do not affect the statements model.) (If there is no effect on the Statement of Cash Flow, leave thecell blank.)JOVA COMPANYHorizontal Statements ModelEventNo.Statement of CashFlowAssets= Liabilities +EquityRevenues - Expenses =Net Income20181.FA+%3D+2.+3.+4.+5.20191.2.+3.4a.4b.+5.+6.

Under Horizontal Statement Model, Transactions to be classified according to the accounting…

Answered: b. Show the effect of each transaction…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please do not give solution in image format ? And Explain Proper Step by Step.
After closing entries are posted, the ending balance of Retained Earnings on the general ledger should: agree with the retained earnings balance in the income statement. be zero. agree with the retained earnings balance in the balance sheet. agree with the retained earnings balance in the statement of cash flows.
In the Excel, or spreadsheet, approach to recording financial transactions, cash paid to creditors is recorded as a decrease in the Cash column and as a decrease in the Retained Earnings column.
WHich of the following is not a major element of the accounting equation. cashflow, expenses, assets, withdrawls
b) statement of cashflow is an important part of financial statement.outline the importance of statement of cashflow. Answer both the subparts a and b.
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4- The balance of payments is most like a(n)___________ * Cashflow Statement Income Statement Statement of Equity Balance Sheet
Indicate the effect of each of the following transactions on total assets, total liabilities, and total stockholders' equity. Select + for increase, for decrease, or No Effect. The first transaction is provided as an illustration. - a. Borrowed cash on a bank loan b. Paid an account payable c. Sold common stock d. Purchased merchandise inventory on account e. Declared and paid dividends f. Collected an account receivable g. Sold merchandise inventory on account at a profit h. Paid operating expenses in cash i. Repaid principal and interest on a bank loan Assets + Liabilities + Stockholders' Equity No Effect
The aging method is closely related to the: a.statement of cash flows. b.statement of financial position. c.statement of retained earnings. d.statement of earnings.
Kindly indicate the impact of each transaction on balance sheet items i.e., Assets, Liabilities and Owner’s Equity in Table 1 Given Below………………………………. Use the Following signs for each transaction under the relevant item + The item is increased due to the transaction. – The item is decreased due to the transaction. + /- One item is increased and another is decreased due to the transaction. Table 1 S. No Transaction Assets Liabilities Equity 1 Investment made by the owner 2 Equipment purchased on account 3 Office equipment purchased with cash 4 1. A bank loan was received in cash by the firm 5 Equipment Sold 6 More Equipment were purchased with Cash 7 The loan lent by the bank was repaid by the firm 8 Cash Withdrawals by the owner 9 Cash received from an account customer 10 Purchased Land, paid half in…
In a T-account credits appear Group of answer choices A. on the left under assets but on the right under liabilities and stockholders’ equity. B. an the right under assets but on the left under liabilities and stockholders’ equity. C. always on the right. D. always on the left.
For each of the following independent transactions, indicate whether there was an Increase, a Decrease, or No Impact for each financial statement element. Transaction Assets Liabilities Owners' Equity Received cash from customer on account Borrowed cash from bank Received and recorded utility bill Paid dividends to owners Performed services and billed customer PLEASE NOTE: You are to use the following words - "Increase", "Decrease", or "No Impact" - when you fill in the blanks (Capitalize and omit the quotation marks).

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