The following transactions apply to Jova Company for 2018, the first year of operation Issued $11,000 of common stock for cash Recognized $66,000 of service revenue earned on account Collected $58,800 from accounts receivable Paid operating expenses of $35,100 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 2019 Recognized $73,500 of service revenue on account Collected $66,800 from accounts receivable Determined that $920 of the accounts receivable were uncollectible and wrote them off Collected $300 of an account that had previously been written off Paid $48,700 cash for operating expenses Adjusted the accounts to recognize uncollectible accounts expense for 2019 Jova estimates uncollectible accounts expense will be 1 0 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 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 (IA), 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 ) Organize the transaction data in accounts under an accounting equation for each year 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 ) 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 ) d 1 Prepare the income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for 2018 Prepare the income statement for 2018 Prepare the statement of changes in stockholders equity for 2018 Prepare the balance sheet for 2018 Prepare the statement of cash flows for 2018 (Amounts to be deducted should be indicated with a minus sign ) d 2 Prepare the income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for 2019 Prepare the income statement for 2019 Prepare the statement of changes in stockholders equity for 2019 Prepare the balance sheet for 2019 Prepare the statement of cash flows for 2019 (Amounts to be deducted should be indicated with a minus sign )

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The following transactions apply to Jova Company for 2018, the first year of operation: Issued $11,000 of common stock for cash. Recognized $66,000 of service

The following transactions apply to Jova Company for 2018, the first year of operation:

Issued $11,000 of common stock for cash.
Recognized $66,000 of service revenue earned on account.
Collected $58,800 from accounts receivable.
Paid operating expenses of $35,100.
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 2019:

Recognized $73,500 of service revenue on account.
Collected $66,800 from accounts receivable.
Determined that $920 of the accounts receivable were uncollectible and wrote them off.
Collected $300 of an account that had previously been written off.
Paid $48,700 cash for operating expenses.
Adjusted the accounts to recognize uncollectible accounts expense for 2019. Jova estimates uncollectible accounts expense will be 1.0 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.

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 (IA), 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.)

Organize the transaction data in accounts under an accounting equation for each year.

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.)

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.)

d-1. Prepare the income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for 2018

Prepare the income statement for 2018.

Prepare the statement of changes in stockholders equity for 2018.

Prepare the balance sheet for 2018.

Prepare the statement of cash flows for 2018. (Amounts to be deducted should be indicated with a minus sign.)

d-2. Prepare the income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for 2019.

Prepare the income statement for 2019.

Prepare the statement of changes in stockholders equity for 2019.

Prepare the balance sheet for 2019.

Prepare the statement of cash flows for 2019. (Amounts to be deducted should be indicated with a minus sign.)