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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 $13,500 of common stock for cash. 2. Recognized $68,500 of service revenue earned on account. 3. Collected $60,800 from accounts receivable. 4. Paid operating expenses of $35,600. 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 $76,000 of service revenue on account. 2. Collected $68,800 from accounts receivable. 3. Determined that $970 of the accounts receivable were uncollectible and wrote them off. 4. Collected $200 of an account that had previously been written off. 5. Paid $49,200 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. c. Organize the transaction data in accounts under an accounting equation. Complete this question by entering your answers in the tabs below. Show less A Req C1 Req C2 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.) Event JOVA COMPANY Accounting Equation for the Year 2 Equity Accounts Titles for Retained Liabilities + Common Retained Earnings Stock Earnings 0 + 13,500 + 31,530 76,000 Service revenue + Assets NRV Accounts Cash + Receivable 38,700 + 6,330) = 76,000 68,800| + (68,800) = Bal. 1. + + + + 2. + + 3. + + + 4a. + = + + + 4b + + + 5. + + + 6. + + Bal. 107,500 + 13,530 = 01 + 13,500 + 107,530 non