5: Homework-Different methods for Estimating Uncoll. 6 Saved 2 Help Save & Exit Submit Check my work 944 points P Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 160 units at $44 per unit. During the year, Cortez made two batch purchases of this chair The first was a 295-unit purchase at $49 per unit, the second was a 390-unit purchase at $51 per unit. During the period, it sold 495 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses a. FIFO b. LIFO c. Weighted average (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) FIFO LIFO Weighted Average Cost of goods sold Ending inventory 3 Part 1 of 5 9.44 points book References 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 $19,500 of common stock for cash. 2. Recognized $60,500 of service revenue eamed on account 3. Collected $54,400 from accounts receivable. 4. Paid operating expenses of $37,600. 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 $68.000 of service revenue on account 2. Collected $62,400 from accounts receivable 3. Determined that $810 of the accounts receivable were uncollectible and wrote them off 4. Collected $200 of an account that had previously been written off 5. Paid $47,600 cash for operating expenses. 6. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jove estimates uncollectible accounts expense will be 10 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 a. identify the type of each transaction (asset source, asset use, esset exchange, or claims exchange) Event Ne Type of Transa Year 1 1 2. 3. A 5 Year 2 1. 2. 3. 48. 4b. 5 0. art 2 of 5 44 ints eBook Print References 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 $19,500 of common stock for cash. 2. Recognized $60,500 of service revenue earned on account 3. Collected $54,400 from accounts receivable. 4. Paid operating expenses of $37,600. 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 $68,000 of service revenue on account. 2. Collected $62,400 from accounts receivable. 3. Determined that $810 of the accounts receivable were uncollectible and wrote them off 4. Collected $200 of an account that had previously been written off. 5. Paid $47,600 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 b. Show the effect of each transaction on the elements of the financial statements, using a horizontal statements model like the one shown here. Use for increase,- for decrease, and leave the cell blank if there is no effect. Also, in the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (A), or financing activity (FA). The first transaction is entered as an example. (Hint Closing entries do not affect the statements model) (If there is no effect on the Statement of Cash Flow, leave the cell blank. Not all cells will require entry.) JOVA COMPANY Horizontal Statements Model Event No. Assels Liabilities Equity Revenues Expenses Net Income Statement of Cash Fiew Year 1 1. 2. 3. 4. 5. Year 2 1. 2. 3. 4a. 46. 5. 6. FA of 5 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 $19,500 of common stock for cash. 2. Recognized $60,500 of service revenue earned on account 3. Collected $54,400 from accounts receivable. 4. Paid operating expenses of $37,600. 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 $68,000 of service revenue on account 2. Collected $62,400 from accounts receivable. 3. Determined that $810 of the accounts receivable were uncollectible and wrote them off 4. Collected $200 of an account that had previously been written off 5. Paid $47,600 cash for operating expenses 6. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jove 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. Red C Red C Show less a Organize the transaction data in accounts under an accounting equation for Year 1. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Eamings, leave the cell blank, Not all cells will require entry.) JOVA COMPANY Accounting Equation for the Year Assets Equity Event Cash NRV Accounts Racalvalde Liabilities Common Steck Retained Earnings Accounting Tiles for Retained Earnings 3 4 6. Bal . . . . RegC2> 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 $19,500 of common stock for cash. 2. Recognized $60,500 of service revenue earned on account 3. Collected $54,400 from accounts receivable. 4. Paid operating expenses of $37,600. 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 Jove for Year 2: 1. Recognized $68,000 of service revenue on account 2. Collected $62,400 from accounts receivable. 3. Determined that $810 of the accounts receivable were uncollectible and wrote them off 4. Collected $200 of an account that had previously been written off 5. Paid $47,600 cash for operating expenses 6. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 10 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. Red C Req C2 Show less a 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 Assets Equity Event Cash NRV Acc Receivable Labilities Retained Accounts Titles for Retained Earnings Stock Bal 2 4 . 5 6 " 60 Part 4 of 5 9.44 points Book Print References 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 $19,500 of common stock for cash. 2. Recognized $60,500 of service revenue earned on account 3. Collected $54,400 from accounts receivable. 4. Paid operating expenses of $37,600. 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 Jove for Year 2: 1. Recognized $68,000 of service revenue on account 2. Collected $62,400 from accounts receivable. 3. Determined that $810 of the accounts receivable were uncollectible and wrote them off 4. Collected $200 of an account that had previously been written off. 5. Paid $47,600 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 Complete this question by entering your answers in the tabs below. Req D1 Inc Stmt Req DI Smt Req Di Ba of Changes Sheet Req DI Stmt of Cash Flows Prepare the income statement for Year 1. JOVA COMPANY Income Statement For the Year Ended Year 1 Expenses Total expenses Re Req D1 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 $19,500 of common stock for cash. 2. Recognized $60,500 of service revenue earned on account. 3. Collected $54,400 from accounts receivable. 4. Paid operating expenses of $37,600. 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 $68,000 of service revenue on account 2. Collected $62,400 from accounts receivable. 3. Determined that $810 of the accounts receivable were uncollectible and wrote them off. 4. Collected $200 of an account that had previously been written off 5. Paid $47,600 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. Complete this question by entering your answers in the tabs below. Req D1 Inc Sumt Req DL Somt Req Di Bal of Changes Sheet Req DI Stmt of Cash Flows Prepare the statement of changes in stockholders' equity for Year 1.1 JOVA COMPANY Statement of Changes in Stockholders' Equity For the Year Ended Year 1 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity Req D1 Inc Stimt Req 01 Bal Sheet > 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 $19,500 of common stock for cash. 2. Recognized $60,500 of service revenue earned on account 3. Collected $54,400 from accounts receivable. 4. Paid operating expenses of $37,600. 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 $68,000 of service revenue on account. 2. Collected $62,400 from accounts receivable. 3. Determined that $810 of the accounts receivable were uncollectible and wrote them off 4. Collected $200 of an account that had previously been written off 5. Paid $47,600 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 Complete this question by entering your answers in the tabs below. Req Di Inc Stmt Req 01 Sont Req DI B of Changes Sheet Prepare the balance sheet for Year 1. JOVA COMPANY Balance Sheet Req D1 Sm of Cash Flows As of December 31, Year 1 Assets Total assets Liabilities Stockholders' equity Total stockholders' equity Total abides and stockholders' equity Req D1 Somt of Changes Req D1 Stmt of Cash Flows > 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 $19,500 of common stock for cash. 2. Recognized $60,500 of service revenue earned on account. 3. Collected $54,400 from accounts receivable. 4. Paid operating expenses of $37,600. 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 $68,000 of service revenue on account. 2. Collected $62,400 from accounts receivable. 3. Determined that $810 of the accounts receivable were uncollectible and wrote them off 4. Collected $200 of an account that had previously been written off 5. Paid $47,600 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 Complete this question by entering your answers in the tabs below. Req D1 Inc Stmt Req DL Stmt Req Di Bal of Changes Sheet Req D1 Sunt of Cash Flows Prepare the statement of cash flows for Year 1. (Cash outflows should be indicated with a minus sign.) JOVA COMPANY Statement of Cash Flows For the Year Ended Year 11 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net cash flow from financing activities Net charge in cash Ending cash balance Req D1 Bal Sheet