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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

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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 $10,000 of common stock for cash. 2. Recognized $210,000 of service revenue earned on account 3. Collected $162,000 from accounts receivable. 4. Paid operating expenses of $125,000. 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 1 percent of sales on account. The following transactions apply to Jova for Year 2: 1. Recognized $320,000 of service revenue on account 2. Collected $335,000 from accounts receivable. 3. Determined that $2,150 of the accounts receivable were uncollectible and wrote them off. 4. Collected $800 of an account that had previously been written off. 5. Paid $205,000 cash for operating expenses. 6. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 0.5 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 c. Organize the transaction data in accounts under an accounting equation for each year. Complete this question by entering your answers in the tabs below. Required 1 Required C2 Organize the transaction data in accounts under an accounting equation for Year 1. (Enter any decreases to account balances with a "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is no corresponding Retained Earning JOVA COMPANY Accounting Equation for the Year 1 Assets Equity Event Accounting Titles for Retained Accounts Liabilities Common Retained Cash Allowance Earnings Receivable stock Earnings 1. 2. + + 3. + 5. + + Bal. 0 0= 0+ 0 + Route Required C2 > JOVA COMPANY Accounting Equation for the Year 2 Equity Liabilities Common Retained Allowance Stock Earnings Assets Accounts Recevable Accounts Titles for Retained Earings Event Cash Bal 1 2 3 45. 5. 6. Bal ol 0 0 0 0

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