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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 $2.$

b$.$ Show the effect of each transaction on the elements of the financial statements, using a horizontal statements model. Use $+$ for increase, $$ for decrease, and leave cell blank for not affected. Also, in the Statement of Cash Flows column, indicate whether the item is an operating activity $($OA$),$ investing activity $($IA$),$ or financing activity $($FA$).$ Leave blank to indicate that an element was not affected by the event. The first transaction is entered as an example. $($Hint: Closing entries do not affect the statements model.$)$