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The following transactions apply to Jova Company for Year $1,$ the first year of operation:

Issued $$14,500$ of common stock for cash.

Recognized $$69,500$ of service revenue earned on account.

Collected $$61,600$ from accounts receivable.

Paid operating expenses of $$35,800.$

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 $2$:

Recognized $$77,000$ of service revenue on account.

Collected $$69,600$ from accounts receivable.

Determined that $$990$ of the accounts receivable were uncollectible and wrote them off.

Collected $$100$ of an account that had previously been written off.

Paid $$49,400$ 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.

Required

Complete the following requirements for Year $1$ and Year $2.$ Complete all requirements for Year $1$ prior to beginning the requirements for Year $2.$

d$-1.$ Prepare the income statement, statement of changes in stockholders$$ equity, balance sheet, and statement of cash flows for Year $1.$The accounting records of Wall's China Shop reflected the following balances as of January $1,$ Year $2-$

The following five transactions occurred in Year $2.$

First purchase $($cash$)120$ units @ $$91$

Second purchase $($cash$)195$ units Q $$99$

Sales $($all cash$)360$ unlts $9198$

Pald $$15,550$ cash for salarles expense

Pald cash for Income tax at the rate of $25$ percent of Income before taxes

Required

a$.$ Compute the cost of goods sold and ending Inventory, assuming $(1)$ FIFO cost flow, $(2)$ LIFO cost flow, and $(3)$ welghted$-$average cost

flow.

b$.$ Use a vertical model to show the Year $2$ Income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and

welghted average. $($Hint: Record the events under an accounting equation before preparing the statements.$)$

Complete this question by entering your answers in the tabs below.

Req B$3$

Use a vertical model to show the Year $2$ income statement under FIFO, LIFO, and weighted average. $($Do not round

intermediate calculations. Round your answers to nearest whole dollar amount.$)$