18 k Mc Graw Hill 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 $28.000 of common stock for cash. 2. Recognized $228.000 of service revenue earned on account. 3. Collected $181,800 from accounts receivable. 4. Paid $143,000 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 2 percent of sales on account. The following transactions apply to Jova for Year 2: 1. Recognized $338,000 of service revenue on account 2. Collected $353,000 from accounts receivable 3. Determined that $3,050 of the accounts receivable were uncollectible and wrote them off 4. Collected $2,600 of an account that had previously been written off. 5. Paid $223,000 cash for operating expenses. 6. Adjusted the accounts to recognize unicollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 10 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 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. Income Statement of Statement Changes Prepare the income statement for Year 1. Service revenue Expenses Balance Sheet Cash Flows Total expenses Net income- JOVA COMPANY Income Statement For the Year Ended Year 1 Operating expenses Uncollectible accounts expense $ 143,000 4,500 78 of 15 Next > 5 ora = Book Print ferences 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. Income Statement of Statement Changes Balance Sheet Cash Flows Prepare the statement of changes in stockholders' equity for Year 1. JOVA COMPANY Statement of Changes in Stockholders' Equity For the Year Ended Year 1 $ Beginning common stock Plus: Common stock issued Ending common stock Beginning retained earnings Plus: Net income Ending retained earnings Total Stockholders' Equity $ 28,000 0 3,380 $ $ Part 5 of 8 1.66 points eBook Print References 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. Income Statement Balance Sheet Cash Flows Prepare the balance sheet for Year 1. (Enter amounts to be deducted with a minus sign.) JOVA COMPANY Balance Sheet As of December 31, Year 1 Statement of Changes Assets Cash Accounts receivable Less Allowance for doubthul accounts Total assets Liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity (3,050) $ 28,000 3,380 $ $ (3,050) 3,050 31,380 31,380 B ok ences 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. Income Statement Statement of Balance Sheet Cash Flows Changes Prepare the statement of cash flows for Year 1. (Enter cash outflows with a minus sign.). JOVA COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Inflow from customers i Outflow for expenses Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: Inflow from issue of common stock Net change in cash Plus: Beginning cash balance i Ending cash balance $ 181,000 (143,000) Balance Sheet $ 38,000 $ 38,000 38,000
