Prepare the income statement, statement of changes in stockholders$$ equity, balance sheet, and statement of cash flows for Year $1.$The following transactions apply to Jova Company for Year $1,$ the first year of operation:

Issued $$11,000$ of common stock for cash.

Recognized $$211,000$ of service revenue earned on account.

Collected $$163,100$ from accounts receivable.

Paid $$126,000$ cash for operating expenses.

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 $2$:

Recognized $$321,000$ of service revenue on account.

Collected $$336,000$ from accounts receivable.

Determined that $$2,200$ of the accounts receivable were uncollectible and wrote them off.

Collected $$900$ of an account that had previously been written off.

Paid $$206,000$ cash for operating expenses.

Adjusted the accounts to recognize uncollectible accounts expense for Year $2.$ Jova estimates uncollectible accounts expense will be $1\mathrm{.}0$ 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 $2.$