The following transactions apply to Kobooba Company for Year 1, the first year of operation Issued 10,000$ of common stock for cash Recognized 210,000$ of service revenue earned on account Collected 162,000$ from accounts receivable Paid operating expenses of 125,000 $ Adjusted accounts to recognize uncollectible accounts expense Kobooba 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 Kobooba for Year 2 Recognized 320,000$ of service revenue on account Collected 335,000$ from accounts receivable Determined that 2,150$ of the accounts receivable were uncollectible and wrote them off Collected 800$ of an account that had previously been written off Paid 205,000$ cash for operating expenses Adjusted the accounts to recognize uncollectible accounts expense for Year 2 Kobooba estimates uncollectible accounts expense will be 0 5 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 Accounting Equation for the Year 2 Assets Equity Event II Liabilities Cash NRV Accounts Receivable Accounts Titles for Retained Earnings Common Stock Retained Earnings Bal 1 Service revenue 2 3 4a 4b 5 II Operating expenses Uncollectible accounts expense 6 Bal 0 0 0 o 0 Accounting Equation for the Year 1 Equity Event Assets NRV Accounts Receivable Liabilities Common Stock Cash Accounting Titles for Retained Earnings Retained Earnings 1 2 Service revenue 3 4 Operating expenses Uncollectible accounts expense 5 Bal 0 O 0 O 0

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Posted on Jul 17, 2024

The following transactions apply to Kobooba Company for Year 1, the first year of operation: Issued 10,000$ of common stock for cash. Recognized 210,000$ of

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

Issued 10,000$ of common stock for cash.
Recognized 210,000$ of service revenue earned on account.
Collected 162,000$ from accounts receivable.
Paid operating expenses of 125,000.$
Adjusted accounts to recognize uncollectible accounts expense. Kobooba 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 Kobooba for Year 2:

Recognized 320,000$ of service revenue on account.
Collected 335,000$ from accounts receivable.
Determined that 2,150$ of the accounts receivable were uncollectible and wrote them off.
Collected 800$ of an account that had previously been written off.
Paid 205,000$ cash for operating expenses.
Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Kobooba estimates uncollectible accounts expense will be 0.5 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.

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Accounting Equation for the Year 2 Assets Equity Event II Liabilities + Cash NRV Accounts Receivable + Accounts Titles for Retained Earnings Common Stock Retained Earnings + Bal. + = + + 1. + = + + Service revenue 2. + = + + 3. + = + 4a. + = + + 4b. + = + + 5. + II + + Operating expenses Uncollectible accounts expense 6. + = + + + Bal. 0 + 0 = 0 o + 0 Accounting Equation for the Year 1 Equity Event Assets NRV + Accounts Receivable Liabilities + Common Stock Cash Accounting Titles for Retained Earnings Retained Earnings + 1. + = + + 2. + = + + Service revenue 3. + = + + 4. + = + + Operating expenses Uncollectible accounts expense 5. + + Bal. 0 + O = 0 + O + 0