[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 $12,000 of common stock for cash. 2. Recognized $67,000 of service revenue earned on account. 3. Collected $59,600 from accounts receivable. 4. Paid operating expenses of $35,300. 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 $74,500 of service revenue on account. 2. Collected $67,600 from accounts receivable. 3. Determined that $940 of the accounts receivable were uncollectible and wrote them off. 4. Collected $200 of an account that had previously been written off. 5. Paid $48,900 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. Organize the transaction data in accounts under an accounting equation.
[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 $12,000 of common stock for cash. 2. Recognized $67,000 of service revenue earned on account. 3. Collected $59,600 from accounts receivable. 4. Paid operating expenses of $35,300. 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 $74,500 of service revenue on account. 2. Collected $67,600 from accounts receivable. 3. Determined that $940 of the accounts receivable were uncollectible and wrote them off. 4. Collected $200 of an account that had previously been written off. 5. Paid $48,900 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. Organize the transaction data in accounts under an accounting equation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Rahul
![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 $12,000 of common stock for cash.
2. Recognized $67,000 of service revenue earned on account.
3. Collected $59,600 from accounts receivable.
4. Paid operating expenses of $35,300.
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 $74,500 of service revenue on account.
2. Collected $67,600 from accounts receivable.
3. Determined that $940 of the accounts receivable were uncollectible and wrote them off.
4. Collected $200 of an account that had previously been written off.
5. Paid $48,900 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.
c. Organize the transaction data in accounts under an accounting equation.
Complete this question by entering your answers in the tabs below.
Req C1
Req C2
Show less ▲
Organize the transaction data in accounts under an accounting equation for Year 2. (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. Not all cells will require entry.)
JOVA COMPANY
Accounting Equation for the Year 2
Assets
Equity
Accounts Titles for Retained
Event
Cash
+
NRV Accounts
Receivable
Liabilities
+ Common
Stock
Retained
Earnings
Earnings
Bal.
+
+
+
4a.
4b.
5.
6.
རྒྱ་ས ཚ ཙུ ༔
Bal.
+
+
+](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5c9d73e7-0ae7-4bd9-a54e-0d9c4c2a2154%2F3573a30d-0d90-4501-a790-e612b715760b%2F7egdybo_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 $12,000 of common stock for cash.
2. Recognized $67,000 of service revenue earned on account.
3. Collected $59,600 from accounts receivable.
4. Paid operating expenses of $35,300.
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 $74,500 of service revenue on account.
2. Collected $67,600 from accounts receivable.
3. Determined that $940 of the accounts receivable were uncollectible and wrote them off.
4. Collected $200 of an account that had previously been written off.
5. Paid $48,900 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.
c. Organize the transaction data in accounts under an accounting equation.
Complete this question by entering your answers in the tabs below.
Req C1
Req C2
Show less ▲
Organize the transaction data in accounts under an accounting equation for Year 2. (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. Not all cells will require entry.)
JOVA COMPANY
Accounting Equation for the Year 2
Assets
Equity
Accounts Titles for Retained
Event
Cash
+
NRV Accounts
Receivable
Liabilities
+ Common
Stock
Retained
Earnings
Earnings
Bal.
+
+
+
4a.
4b.
5.
6.
རྒྱ་ས ཚ ཙུ ༔
Bal.
+
+
+
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