Organize the transaction data in accounts under an accounting equation for 2018. (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.)
Organize the transaction data in accounts under an accounting equation for 2018. (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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Req C1
Reg C2
Organize the transaction data in accounts under an accounting equation for 2018. (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.)
JOVA COMPANY
Accounting Equation for the Year 2018
Assets
Equity
Accounting Titles for Retained
Earnings
Event
Liabilities
Retained
Accounts
Receivable
Common
Cash
Allowance
stock
Earnings
1.
2.
3.
+
+
+
4.
5.
Bal.
0 +
+
Reg C1
Req C2"
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Show less A
Req C1
Reg C2
Organize the transaction data in accounts under an accounting equation for 2018. (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.)
JOVA COMPANY
Accounting Equation for the Year 2018
Assets
Equity
Accounting Titles for Retained
Earnings
Event
Liabilities
Retained
Accounts
Receivable
Common
Cash
Allowance
stock
Earnings
1.
2.
3.
+
+
+
4.
5.
Bal.
0 +
+
Reg C1
Req C2
![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 for
uncollectible 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 accounts
expense will be 0.5 percent of sales on account.
Required
Complete the following requirements for 2018 and 2019. Complete all requirements for 2018 prior to beginning the
requirements for 2019.
c. Organize the transaction data in accounts under an accounting equation for each year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff8151a55-1f97-4293-9574-706e6f6ba5ac%2Fd355baf2-2ca8-48c0-9e4e-3f800119088f%2F05n7nuj_processed.png&w=3840&q=75)
Transcribed Image Text: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 for
uncollectible 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 accounts
expense will be 0.5 percent of sales on account.
Required
Complete the following requirements for 2018 and 2019. Complete all requirements for 2018 prior to beginning the
requirements for 2019.
c. Organize the transaction data in accounts under an accounting equation for each year.
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