[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.
[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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please don't provide answer in image format thank you
Transcribed Image Text:d-2. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year
2.
Complete this question by entering your answers in the tabs below.
Req D2 Stmt
of Changes
Prepare the income statement for Year 2.
Req D2 Inc
Stmt
Expenses
Total expenses
Req D2 Bal
Sheet
Req D2 Stmt
of Cash Flows
JOVA COMPANY
Income Statement
For the Year Ended Year 2
< Req D2 Inc Stmt
Req D2 Stmt of Changes >
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa71fdef6-625b-4f6b-ba60-dc697dcf35aa%2F9d77e44e-f741-4e6d-ba0c-423f851d1a9d%2Fwma40jl_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 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.
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