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 $14,000 of common stock for cash. 2. Recognized $69,000 of service revenue earned on account. 3. Collected $61,200 from accounts receivable. 4. Paid operating expenses of $35,700. 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 $76,500 of service revenue on account. 2. Collected $69,200 from accounts receivable. 3. Determined that $980 of the accounts receivable were uncollectible and wrote them off. 4. Collected $300 of an account that had previously been written off. 5. Paid $49,300 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. d-1. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1
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 $14,000 of common stock for cash. 2. Recognized $69,000 of service revenue earned on account. 3. Collected $61,200 from accounts receivable. 4. Paid operating expenses of $35,700. 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 $76,500 of service revenue on account. 2. Collected $69,200 from accounts receivable. 3. Determined that $980 of the accounts receivable were uncollectible and wrote them off. 4. Collected $300 of an account that had previously been written off. 5. Paid $49,300 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. d-1. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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 $14,000 of common stock for cash.
2. Recognized $69,000 of service revenue earned on account.
3. Collected $61,200 from accounts receivable.
4. Paid operating expenses of $35,700.
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 $76,500 of service revenue on account.
2. Collected $69,200 from accounts receivable.
3. Determined that $980 of the accounts receivable were uncollectible and wrote them off.
4. Collected $300 of an account that had previously been written off.
5. Paid $49,300 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.
d-1. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year
1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff8033e12-306b-4455-b62f-c75f6c572a50%2F13a91a9d-3bb1-46a9-a519-0bb6613325b4%2Fhz1hot_processed.jpeg&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 Year 1, the first year of operation:
1. Issued $14,000 of common stock for cash.
2. Recognized $69,000 of service revenue earned on account.
3. Collected $61,200 from accounts receivable.
4. Paid operating expenses of $35,700.
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 $76,500 of service revenue on account.
2. Collected $69,200 from accounts receivable.
3. Determined that $980 of the accounts receivable were uncollectible and wrote them off.
4. Collected $300 of an account that had previously been written off.
5. Paid $49,300 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.
d-1. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year
1
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