The following transactions apply to Jova Company for Year 1, the first year of operation: a. thru d.
a.
b.
c.
journal entries: entry for issauance of common stock, service revenue on account, collection of cash from accounts recievables, cash paid for operating expenses, adjusting entry for uncollectible accounts expense that will be 1% of sales on account
d.
journal entries: service rev on account, collection of cash from acc recievable, uncollectible accounts recievable written off, reversal entry for allowances of doubtful accounts, cash collected on account that had previously been written off, cash paid for operating expenses, entry to recognize uncollect. acct. exp. for y2. Jova estimates UAE will be 0.5% of Sales on Account
T accounts
Complete this question by entering your answers in the tabs below. Record the year 1 transactions in general journal form. (If no entry is required for a transaction/event, select "No joumal entry in the first account field.) Journal entry worksheet Record entry for issuance of common stock. Woten toter ilebits before coedits. Required o. Identify the type of each transaction (asset source, asset use, asset exchange, or claims exchange). b. Show the effect of each transaction on the elements of the financial statements, using a horizontal statements model. Use + for increase, - for decrease, and leave cell blank for not affected. Also, in the Statement of Cash Flows column, indicate whether the item is an operating activity (OA). investing activity (IA), or financing activity (FA). Leave blank to indicate that an element was not affected by the event. The first transaction is entered as an example. (Hint: Closing entries do not affect the statements model.) 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 $220,000 of service revenue earned on account. 3. Collected $173,000 from accounts receivable. 4. Paid $135,000 cash for operating expenses. 5. Adjusted the 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 Year 2 : 1. Recognized $330,000 of service revenue on account. 2. Collected $345,000 from accounts receivable. 3. Determined that $2,650 of the accounts receivable were uncollectible and wrote them off. 4. Coliected $1,800 of an account that had previously been written off. 5. Paid $215,000 cash for operating expenses. 6. Adjusted the accounts to recognize uncollectible accounts expense for Year 2 Jova estimates uncollectible accounts expense will be 0.5 percent of sales on account. Complete the following requirements for Year 1 and Year 2 . Complete all requirements for Year 1 prior to beginning the requirements for Year 2 Post the Year 1 transactions to T-accounts. \begin{tabular}{|l|l|l|l|} \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline Balance Before Closing & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline Beginning Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline Beginning Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline Balanco Defore Closing & & & \\ \hline & & & \\ \hline \end{tabular} Operatiag Expenses: Allow. for Doutictul Accouns. Bsginniog Ealance \begin{tabular}{|l|l|l|l|} \hline Beginning Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Balance Before Closkg \begin{tabular}{|l|l|l|l|} \hline Beginning Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} 4. Geneial doutnal Record the year 2 transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry re in the first account fieldi) Journal entry worksheet Complete this question by entering your answers in the tabs below. Record the year 1 transactions in general journal form. (If no entry is required for a transaction/event, select "No joumal entry in the first account field.) Journal entry worksheet Record entry for issuance of common stock. Woten toter ilebits before coedits. Required o. Identify the type of each transaction (asset source, asset use, asset exchange, or claims exchange). b. Show the effect of each transaction on the elements of the financial statements, using a horizontal statements model. Use + for increase, - for decrease, and leave cell blank for not affected. Also, in the Statement of Cash Flows column, indicate whether the item is an operating activity (OA). investing activity (IA), or financing activity (FA). Leave blank to indicate that an element was not affected by the event. The first transaction is entered as an example. (Hint: Closing entries do not affect the statements model.) 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 $220,000 of service revenue earned on account. 3. Collected $173,000 from accounts receivable. 4. Paid $135,000 cash for operating expenses. 5. Adjusted the 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 Year 2 : 1. Recognized $330,000 of service revenue on account. 2. Collected $345,000 from accounts receivable. 3. Determined that $2,650 of the accounts receivable were uncollectible and wrote them off. 4. Coliected $1,800 of an account that had previously been written off. 5. Paid $215,000 cash for operating expenses. 6. Adjusted the accounts to recognize uncollectible accounts expense for Year 2 Jova estimates uncollectible accounts expense will be 0.5 percent of sales on account. Complete the following requirements for Year 1 and Year 2 . Complete all requirements for Year 1 prior to beginning the requirements for Year 2 Post the Year 1 transactions to T-accounts. \begin{tabular}{|l|l|l|l|} \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline Balance Before Closing & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline Beginning Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline Beginning Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline Balanco Defore Closing & & & \\ \hline & & & \\ \hline \end{tabular} Operatiag Expenses: Allow. for Doutictul Accouns. Bsginniog Ealance \begin{tabular}{|l|l|l|l|} \hline Beginning Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Balance Before Closkg \begin{tabular}{|l|l|l|l|} \hline Beginning Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} 4. Geneial doutnal Record the year 2 transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry re in the first account fieldi) Journal entry worksheet
