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. a. Identify the type of each transaction (asset source, asset use, asset exchange, or claims exchange). Event No. 2018 Type of Transaction 1. 2. 3. 4. 5. 2019 1. 2. 3. 4a 4b 5. 6. b. Show the effect of each transaction on the elements of the financial statements, using a horizontal statements model like the one shown here. Use + for increase and - for decrease; leave the cell blank if there is no effect. Also, in the Cash Flow column, indicate whether the item is an operating activity (OA). investing activity (LA). or financing activity (FA). The first transaction is entered as an example. (Hint Closing entries do not affect the statements model.) (If there is no effect on the Statement of Cash Flow, leave the cell blank.) JOVA COMPANY Horizontal Statements Model Event No. Assets = Liabilities + Equity Revenues Expenses = Net Income Statement of Cash Flow 2018 1. FA 2. 3. +++++ 4. 5. 2019 1. 2. 3. 4a. 4b. 5. 6. 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 Reg C1 Req c2 Organize the transaction data in accounts under an accounting equation for 2018. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank.) JOVA COMPANY Accounting Equation for the Year 2018 Assets Equity Accounting Titles for Retained Event Accounts + Common Allowance Retained Earnings Receivable stock Earnings Liabilities Cash 1. + + 2. II + 3. 4. + + + + + 5. Bal. 0 0 0 0 ReqC Req C2 > 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 A Reg C1 Req C2 Organize the transaction data in accounts under an accounting equation for 2019. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank.) JOVA COMPANY Accounting Equation for the Year 2019 Assets Equity Accounts Titles for Retained Accounts Liabilities Cash Allowance Retained Earnings Receivable Stock Earnings Bal Event Common + + 1. + 2. 3. 4a. 4b. 5. 6. Bal. 0 + 0 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 D1 Inc Req D1 SE Stmt Reg Di Bal Sheet Reg D1 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. Reg D1 Inc Reg D1 SE Reg Di Bal Reg Di Stmt Stmt Sheet 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 S 0 Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity 0 0 S 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 D1 Stmt CF Req D1 Inc Req D1 SE Reg Di Bal Stmt Sheet Prepare the balance sheet for 2018. JOVA COMPANY Balance Sheet As of December 31, 2018 Assets 0 Total assets S 0 Liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity S 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. Req D1 Inc Stmt Reg D1 SE Reg D1 Bal Reg D1 Stmt Sheet 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: S 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 S 0 d-2. Prepare the income statement, statement of changes in stockholders' equity. balance sheet, and statement of cash flows for 2019. Complete this question by entering your answers in the tabs below. Reg D2 Inc Stmt Reg D2 SE Reg D2 Bal Sheet Reg D2 Stmt CF Prepare the statement of changes in stockholders' equity for 2019. JOVA COMPANY Statement of Changes in Stockholders' Equity For the Year Ended 2019 Beginning common stock S 0 Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity 0 0 S d-2. Prepare the income statement, statement of changes in stockholders' equity. balance sheet, and statement of cash flows for 2019. Complete this question by entering your answers in the tabs below. Reg D2 Inc Stmt Req D2 SE Reg D2 Bal Sheet Reg D2 Stmt CF Prepare the balance sheet for 2019. JOVA COMPANY Balance Sheet As of December 31, 2019 Assets 0 S 0 Total assets Liabilities Stockholders' equity Total stockholders' equity 0 d-2. Prepare the income statement, statement of changes in stockholders' equity. balance sheet, and statement of cash flows for 2019. Complete this question by entering your answers in the tabs below. Req D2 Inc Stmt Reg D2 SE Req D2 Bal Sheet Reg D2 Stmt CF Prepare the statement of cash flows for 2019. (Amounts to be deducted should be indicated with a minus sign.) JOVA COMPANY Statement of Cash Flows For the Year Ended 2019 Cash flows from operating activities: S 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 S 0