Line THIOWITY TO dorappies to ule questions U/Spidyeu verw./ The following transactions apply to Jova Company for Year 1, the first year of operation: 1. Issued $16,500 of common stock for cash. 2. Recognized $63,500 of service revenue earned on account. 3. Collected $56,800 from accounts receivable. 4. Paid operating expenses of $36,400. 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 $71,000 of service revenue on account 2. Collected $64,800 from accounts receivable. 3. Determined that $870 of the accounts receivable were uncollectible and wrote them off. 4. Collected $200 of an account that had previously been written off 5. Pald $48.200 cash for operating expenses 6. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1 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 roblem 7-17A (Algo) Parta Problem 7-17A (Algo) Part a a. Identify the type of each transaction (asset source, asset use, asset exchange, or claims exchang Event No. Type of Transaction Year 1 1 2 3 4 5 Year 2 1 2 3 4a 4b UN 6 b. Show the effect of each transaction on the elements of the financial statements, using a horizontal statements model like the one shown here. The first transaction is entered as an example. (Columns for events that have no effect on any of the elements should be left blank.) (Use for increase or - for decrease. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Not all cells will require input.) JOVA COMPANY Horizontal Statements Model Balance Sheet Income Statement Stockholders - Liabilities + Revenues Equity Expenses Net Income Event No. Assets Statement of Cash Flows Year 1 1 2 3 FA 4 5 Year 2 1 2 3 4 45 5 6 Show less Required CI Required C2 Organize the transaction data in accounts under an accounting equation for Year 1. (Enter any decreases to account balances with a minus sign Not all cells require input.) JOVA COMPANY Accounting Equation for Year 1 Assets Stockholders' Equity Event NRV Liabilities Account Titles for Retained Earnings Common Cash Accounts Retained stock Receivable Earnings 1 2 3 4 5 Bal Rogu Required C2 > Show less Required C Required C Organize the transaction data in accounts under an accounting equation for Year 2. For event 4, reinstate the customer's account receivable in 4a and record the receipt of payment on account in 46. (Enter any decreases to account balances with a minus sign. Not all cells require input.) JOVA COMPANY Accounting Equation for Year 2 Stockholders' Equity Liabilities Common Retained Stock Earnings Assets NRV Accounts Receivable Event Cash Account Titles for Retained Earnings Bal 1 2 3 4 4b 5 6 Bal Reg D1 Req DI Stmt Reg D1 Reg D1 Stmt Income Stmt of Char Cash Flows Reg D1 Stmt of Changes Prepare the statement of changes in stockholders' equity for Year 1. Book rint rences 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 camings Total stockholders' equity ts Reg D1 Income Stmt Reg Di Stmt Reg D1 Reg D1 Stmt of Changes Balance Sheet of Cash Flows Prepare the balance sheet for Year 1. Book Print JOVA COMPANY Balance Sheet As of December 31, Year 1 -terences Assets Total assets Liabilities Stockholders' equity Total stockholders oquity Total liabilities and stockholders equity 3.33 points Reg D1 Income Stmt Reg D1 Stmt Reg D1 Reg D1 Stmt of Changes Balance Sheet of Cash Flows eBook Prepare the statement of cash flows for Year 1. (Amounts to be deducted should be indicated wit Print References JOVA COMPANY Statement of Cash Flows For the Year Ended Year 1 Cash flows from operating activities Not cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net cash flow from financing activities Net change in cash Mc