Required information (The following information applies to the questions displayed below. The following transactions apply to Jova Company for 2018, 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 2019: 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 2019. Jova estimates uncollectible accounts expense will be 0.5 percent of sales on account. Required Complete the following requirements for 2018 and 2019. Complete all requirements for 2018 prior to beginning the requirements for 2019. d-1. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for 2018. Complete this question by entering your answers in the tabs below. Reg Di Inc Stmt Req D1 SE Req Di Bal Sheet Reg Di Stmt CF Prepare the income statement for 2018. JOVA COMPANY Income Statement For the Year Ended 2018 Expenses Total expenses d-1. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for 2018. Complete this question by entering your answers in the tabs below. Req Di Inc Stmt Reg D1 SE Reg Di Bal Sheet Reg Di Stmt CF Prepare the statement of changes in stockholders' equity for 2018. JOVA COMPANY Statement of Changes in Stockholders' Equity For the Year Ended 2018 Beginning common stock $ 0 Ending common stock Beginning retained earnings 0 Ending retained earnings Total stockholders' equity $ 0 d-1. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for 2018. Complete this question by entering your answers in the tabs below. Reg Di Inc Stmt Reg D1 SE Reg Di Bal Sheet Reg Di Stmt CF Prepare the balance sheet for 2018. JOVA COMPANY Balance Sheet As of December 31, 2018 Assets 0 Total assets $ 0 Liabilities Stockholders' equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 d-1. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for 2018. Complete this question by entering your answers in the tabs below. Reg Di Inc Stmt Req Di SE Reg Di Bal Sheet Reg Di Stmt CF Prepare the statement of cash flows for 2018. (Amounts to be deducted should be indicated with a minus sign.) JOVA COMPANY Statement of Cash Flows For the Year Ended 2018 Cash flows from operating activities: $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash 0 Ending cash balance $ 0
