The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $12,000 of common stock for cash. Recognized $67,000 of service revenue earned on from accounts receivable. Paid operating expenses of $35, 300. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for estimates that uncollectible accounts expense will be 2 percent of sales on account. The following transactions apply to Jova for Year 2: Recognized $74,500 of service revenue on account. ounts receivable. Determined that $940 of the accounts receivable were uncollectible and wrote them off. Collected $200 of an account that had previously been written off. Paid $48,900 s. 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 for Year 1 and Year 2. Complete all requirements for Year 1 prior to beginning the requirements for Year 2 d.2. Prepare the income statement statement of changes in stockholders' equi

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Req D1 Inc
Stmt
Req D1 Stmt
of Changes
Req D1 Bal
Sheet
Req D1 Stmt
of Cash Flows
Prepare the income statement for Year 1.
JOVA COMPANY
Income Statement
For the Year Ended Year 1
Expenses
Total expenses
< Req D1 Inc Stmt
0
Req D1 Stmt of Changes >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Assessment Tool iFrame Req D1 Inc Stmt Req D1 Stmt of Changes Req D1 Bal Sheet Req D1 Stmt of Cash Flows Prepare the income statement for Year 1. JOVA COMPANY Income Statement For the Year Ended Year 1 Expenses Total expenses < Req D1 Inc Stmt 0 Req D1 Stmt of Changes >
Complete this question by entering your answers in the tabs below. Assessment Tool iFrame Prepare the income statement for Year 1. Required information Skip to question [The following information applies to the
questions displayed below.] The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $12,000 of common stock for cash. Recognized $67,000 of service revenue earned on
account. Collected $59,600 from accounts receivable. Paid operating expenses of $35, 300. 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: Recognized $74,500 of service revenue on account.
Collected $67,600 from accounts receivable. Determined that $940 of the accounts receivable were uncollectible and wrote them off. Collected $200 of an account that had previously been written off. Paid $48, 900
cash for operating expenses. 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-2. Prepare the income statement, statement of changes in stockholders' equity,
balance sheet, and statement of cash flows for Year 2.
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Assessment Tool iFrame Prepare the income statement for Year 1. Required information Skip to question [The following information applies to the questions displayed below.] The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $12,000 of common stock for cash. Recognized $67,000 of service revenue earned on account. Collected $59,600 from accounts receivable. Paid operating expenses of $35, 300. 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: Recognized $74,500 of service revenue on account. Collected $67,600 from accounts receivable. Determined that $940 of the accounts receivable were uncollectible and wrote them off. Collected $200 of an account that had previously been written off. Paid $48, 900 cash for operating expenses. 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-2. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 2.
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