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: 3 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. Show less Required c1 Required C2 Organize the transaction data in accounts under an accounting equation for Year 1. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is no corresponding Retained Earnings input needed.) JOVA COMPANY Accounting Equation for the Year 1 Equity = Liabilities + Allowance Common Retained stock Earnings Assets Accounts Receivable Event Accounting Titles for Retained Earnings Cash + 1. + + 2. - + + + + 3. + + + + + 4. 5. = = 1 + + + Bal. + + Rick Hall owns a card shop, Hall's Cards. The following cash information is available for the month of August Year 1: As of August 31, the bank statement shows a balance of $16,140. The August 31 unadjusted balance in the Cash account of Hall's Cards is $14,100. A review of the bank statement revealed the following information: 1. A deposit of $4,150 on August 31, Year 1, does not appear on the August bank statement. 2. It was discovered that a check to pay for baseball cards was correctly written and paid by the bank for $4,500 but was recorded on the books as $5,400. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $5,370 were found to be outstanding 4. A debit memo $80 was included in the bank statement for the purchase of a new supply of checks. Required Prepare a bank reconciliation at the end of August showing the true cash balance. HALL'S CARDS Bank Reconciliation August 31, Year 1 Unadjusted Bank Balance, August Year True Cash Balance, August 31, Year 1 Unadjusted Book Balance, August 31, Year 1 True Cash Balance August 31, Year 1