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 recevable 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 information Required D Inc Required D Stmt Required D Bal Stmt Stkholders Eq Sheet Prepare an income statement for Year 1. Required D Stmt of Cash Flows ET JOVA COMPANY Income Statement For the Year Ended Year 1 Service revenue Expenses Operating expenses $ 125,000 Uncollectible accounts expense 2,100 $ 210,000 Total expenses Net income 127,100 $ 82,900 RD IS Required D Stmt Stkholders Eq> Required information Required D Inci Required D Required D Required D Bal Stmt Stmt of Cash Stmt Sheet Stkholders Eq Flows Prepare the statement of changes in stockholders' equity for Year 1. JOVA COMPANY Statement of Changes in Stockholders' Equity For the Year Ended Year 1 Beginning common stock $ 10,000 Ending common stock Beginning retained earnings $ 10,000 $ 82,900 Ending retained earnings Total stockholders' equity 82,900 92,900 $