Year 2 T-Accounts info needed The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $20,000 of common stock for cash. Recognized $220,000 of service revenue earned on account. Collected $173,000 from accounts receivable. Paid $135,000 cash for operating expenses. Adjusted the 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 Year 2: Recognized $330,000 of service revenue on account. Collected $345,000 from accounts receivable. Determined that $2,650 of the accounts receivable were uncollectible and wrote them off. Collected $1,800 of an account that had previously been written off. Paid $215,000 cash for operating expenses. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 0.5 percent of sales on account. 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-2. Record the Year 2 transactions in general journal form and post them to T-accounts (begin Year 2 with the ending T-account balances from Year 1).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Year 2 T-Accounts info needed

The following transactions apply to Jova Company for Year 1, the first year of operation:

Issued $20,000 of common stock for cash.
Recognized $220,000 of service revenue earned on account.
Collected $173,000 from accounts receivable.
Paid $135,000 cash for operating expenses.
Adjusted the 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 Year 2:

Recognized $330,000 of service revenue on account.
Collected $345,000 from accounts receivable.
Determined that $2,650 of the accounts receivable were uncollectible and wrote them off.
Collected $1,800 of an account that had previously been written off.
Paid $215,000 cash for operating expenses.
Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 0.5 percent of sales on account.

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-2. Record the Year 2 transactions in general journal form and post them to T-accounts (begin Year 2 with the ending T-account balances from Year 1).

Complete this question by entering your answers in the tabs below.
General
Journal
T Accounts
Post the Year 2 transactions to T-accounts.
Cash
Accounts Receivable
Beginning Balance
Beginning Balance
Balance Before Closing
Balance Before Closing
Common Stock
Retained Earnings
Beginning Balance
Beginning Balance
Balance Before Closing
Balance Before Closing
Service Revenue
Operating Expenses
Beginning Balance
Beginning Balance
Balance Before Closing
Balance Before Closing
Allow. For Doubtful Accounts
Uncoll. Accts. Expense
Beginning Balance
Beginning Balance
Balance Before Closing
Balance Before Closing
< General Journal
TAccounts >

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