- 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 $20,000 of common stock for cash. 2. Recognized $60,000 of service revenue earned on account. 3. Collected $54,000 from accounts receivable. 4. Paid operating expenses of $37,800. 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 Your 2: 1. Recognized $67,500 of service revenue on account. 2. Collected $62,000 from accounts receivable. 3. Determined that $800 of the accounts receivable were uncollectible and wrote them off. 4. Collected $300 of an account that had previously been written oft 5. Pald $47,500 cash for operating expenses. 6. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1 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 eparece slatemen es JOVA COMPANY Statement of Cash Flows For the Year Ended Year 2 Cash flows from operating activities: Inflow from customers Outflow for expenses (47,500) 0 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 $ 47,500) 0 0 (47,500) 36,200 $(11,300) (Required D Bal Sheet Regulamin