[The following information applies to the questions displayed below) The following transactions apply to Jova Company for Year 1, the first year of operation: 13 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 Year 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 Ivere uncollectible and wrote them oft, 4. Collected $300 of an account that had previously been written oft 5. Paid $47,500 cash for operating expenses 6. Adjusted the accounts to recognize uncollectiblo 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 Check my wor Required information Organize the transaction data in accounts under an accounting equation for Year 2. For event 4, reinstate the customer's account receivable in 4a of payment on account in 4b. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnin an input - leave cells blank if there is no corresponding Retained Earnings input needed.) JOVA COMPANY Accounting Equation for the Year 2 Assets Equity Accounts Titles for Retained Event Accounts Liabilities Cash Retained Common Allowance Receivable Earnings Stock Earnings Bal. 1 + 2. 3 + + + 40 40 5 6. + Bal 0 O 0+ 0 + 0 question by entering your answers in the tabs be Required D Inc Required D Required D Bal Stmt Stmt Sheet Stkholders Eq Prepare an income statement for Year 1. Required D Stmt of Cash Flows JOVA COMPANY Income Statement For the Year Ended Year 1 Expenses Total expenses 0 Required D Ine Simu Require 3 Required D Inc Required D Required D Bal Required D Stmt Stmt Sheet Stkholders Eq Stmt of Cash Flows Prepare the statement of changes in stockholders' equity for Year 1. JOVA COMPATY Statement of Changes in Stockholders' Equity For the Year Ended Year 1 Beginning common stock es $ 0 Ending common stock Beginning retained earnings 0 Ending retained earnings Total stockholders' equity 0 Prepare the statement of cash flows for Year 1. (Amounts to be deducted should be indicated with a minus sign. JOVA COMPANY Statement of Cash Flows For the Year Ended Year 1 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance 0