The following transactions apply to Jova Company for Year 1, the first year of operation:

1. Issued $11,500 of common stock for cash.

2. Recognized $66,500 of service revenue earned on account.

3. Collected $59,200 from accounts receivable.

4. Paid operating expenses of $35,200.

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 $74,000 of service revenue on account.

2. Collected $67,200 from accounts receivable.

3. Determined that $930 of the accounts receivable were uncollectible and wrote them off.

4. Collected $100 of an account that had previously been written off.

5. Paid $48,800 cash for operating expenses.

6. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1.0 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.

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

Stmt of Changes Sheet of Cash Flows Prepare the statement of cash flows for Year 2. (Cash outflows should be indi JOVA COMPANY Statement of Cash Flows For the Year Ended Year 2 Cash flows from operating activities: $ O 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