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

1. Issued $15,500 of common stock for cash.
2. Recognized $64,500 of service revenue earned on account.
3. Collected $57,600 from accounts receivable.
4. Paid operating expenses of $36,000.
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 $72,000 of service revenue on account.
2. Collected $65,600 from accounts receivable.
3. Determined that $890 of the accounts receivable were uncollectible and wrote them off.
4. Collected $300 of an account that had previously been written off.
5. Paid $48,400 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.

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