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 $16,000 of common stock for cash. 2. Recognized $64,000 of service revenue earned on account. 3. Collected $57,200 from accounts receivable. 4. Pald operating expenses of $36,200. 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 2 percent of sales on account. The following transactions apply to Jova for Year 2: 1. Recognized $71,500 of service revenue on account 2. Collected $65,200 from accounts receivable. 3. Determined that $880 of the accounts receivable were uncollectible and wrote them off. 4. Collected $100 of an account that had previously been written off 5. Paid $48,300 cash for operating expenses. 6. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 10 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-2. Prepare the Income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 2 Req D2 Inc Stmt Req D2 Stmt of Changes Req D2 Bal Sheet Req D2 Stmt of Cash Flows Prepare the income statement for Year 2. JOVA COMPANY Income Statement For the Year Ended Year 2 Service revenue 71,500 Expenses Operating expenses $ 48,300 Uncollectible accounts expense 715 Total expenses Net income 49,015 22.485 Req D2 Strnt of Changes requirements for Year 2 Complete all requirements for Year 1 prior to beginning the d-2. Prepare the Income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 2 Complete this question by entering your answers in the tabs below. Req D2 Inc Stmt Req D2 Stmt of Changes Req D2 Bal Sheet Req D2 Stmt of Cash Flows Prepare the statement of changes in stockholders' equity for Year 2. JOVA COMPANY Statement of Changes in Stockholders' Equity For the Year Ended Year 2 Beginning common stock Plus: Stock issued Ending common stock S 16,000 $ 10,000 Beginning retained earnings Plus: Net income Ending retained earnings Total stockholders' equity 22,485 22,485 $ 38.485 < Prev Gin Req D2 Inc Stmt Req D2 Stmt of Changes Req D2 Bal Sheet Req D2 Stmt of Cash Flows Prepare the balance sheet for Year 2. JOVA COMPANY Balance Sheet As of December 31, Year 2 Assets Cash Accounts receivable Less Allowance for doubtful accounts 0 S 0 Total assets Liabilities Stockholders' equity Common stock Retained earnings Total stockholders equity Total liabilities and stockholders' equity 0 Req D2 Inc Stmt Req D2 Stmt of Changes Req D2 Bal Sheet Req D2 Stmt of Cash Flows Prepare the statement of cash flows for Year 2, (Cash outflows should be indicated with a minus sign- JOVA COMPANY Statement of Cash Flows For the Year Ended Year 2 Cash flows from operating activities! Inflow from customers Outflow for expenses Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance