Check my The following transactions apply to Jova Company for Year 1, the first year of operation: 1. Issued $17,000 of common stock for cash. 2. Recognized $217,000 of service revenue earned on account. 3. Collected $169,700 from accounts receivable. 4. Paid $132,000 cash for operating expenses. 5. 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: 1. Recognized $327,000 of service revenue on account. 2. Collected $342,000 from accounts receivable. 3. Determined that $2,500 of the accounts receivable were uncollectible and wrote them off 4. Collected $1,500 of an account that had previously been written off. 5. Paid $212.000 cash for operating expenses. 6. 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). X Answer is not complete. Complete this question by entering your answers in the tabs below. General Journal TAccounts Record the year 2 transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Debit Credit General Journal No Event General Journal T Accounts Record the year 2 transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Debit Credit General Journal Event No 327,000 A 1. Accounts receivable 327,000 Service revenue 342,000 00 B 2. Cash Accounts receivable 342,000 ! Required information 3. 2,500 Uncollectible accounts expense Accounts receivable 2,500 D 4a Allowance for doubtful accounts 2,500 X Accounts receivable 2,500 X X 1,500 E 4b Accounts receivable X X 1,500 Uncollectible accounts expense 212,000 F 5. Operating expenses Cash 212,000 465 X G 6. Uncollectible accounts expense 465 Credit card expense Post the Year 2 transactions to T-accounts. Accounts Receivable 212,000 Beginning Balance 2. 5. Cash 54,700 342,000 1,500 Beginning Balance 2. X 217,000 X 169,700 X 3. x 186,200 Balance Before Closing 47,300 Balance Before Closing Common Stock Retained Earnings 82,830 X Beginning Balance 17,000 Beginning Balance Balance Before Closing 17,000 Balance Before Closing 82,830 Service Revenue Operating Expenses Beginning Balance Beginning Balance 4a. 217,000 217,000 2. x % X 132,000 X Balance Before Closing 132,000 Balance Before Closing Uncoll. Accts. Expense Allow. For Doubtful Accounts Beginning Balance 217 x Beginning Balance 2,170 X 217 2,170 Balance Before Closing Balance Before Closing Conoral lournal I Accounts
