%24 S. Required information [The following information applies to the questions displayed below.] 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. 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 1.0 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 of 5 Next > search 70°F fg SuI prt sc AA 144 & $4 5. R. 33 H. sned B. alt ctrl L5 %24 Show less A Req C1 Req C2 Organize the transaction data in accounts under an accounting equation for Year 1. (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. Not all cells will require entry.) JOVA COMPANY Accounting Equation for the Year 1 Assets Equity Accounting Titles for Retained Earnings Event = Liabilities + Common Retained NRV Accounts Receivable Cash Stock Earnings 1. 15,500 + 15,500 2. 64,500 = 64,500 Service revenue (57,600) 3. 4. + 009 (36,000) Operating expenses (1,290) Uncollectible accounts expense 5. Bal. 37,100 + 27,210 = 006 +0 + 00 < Req C1 Req C2 > 1 of 5 ...... < xeN e to search O 70°F SUI prt sc delete 61 AA KA 原S & %23 backspace 3. 7. 33 H. pause WIN alt