Question: Can you help Please. I keep missing a step not sure where. Thank you. The following transactions apply to Jova Company for 2018, the first
Can you help Please. I keep missing a step not sure where. Thank you.
The following transactions apply to Jova Company for 2018, the first year of operation:
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Issued $10,000 of common stock for cash.
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Recognized $210,000 of service revenue earned on account.
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Collected $162,000 from accounts receivable.
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Paid operating expenses of $125,000.
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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 1 percent of sales on account.
The following transactions apply to Jova for 2019:
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Recognized $320,000 of service revenue on account.
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Collected $335,000 from accounts receivable.
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Determined that $2,150 of the accounts receivable were uncollectible and wrote them off.
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Collected $800 of an account that had previously been written off.
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Paid $205,000 cash for operating expenses.
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Adjusted the accounts to recognize uncollectible accounts expense for 2019. Jova estimates uncollectible accounts expense will be 0.5 percent of sales on account.
Required
Complete the following requirements for 2018 and 2019. Complete all requirements for 2018 prior to beginning the requirements for 2019.
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Organize the transaction data in accounts under an accounting equation for each year.
Req C1
- Req C2
Organize the transaction data in accounts under an accounting equation for 2018. (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.)
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- Req C1
- Req C2
Organize the transaction data in accounts under an accounting equation for 2019. (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.)
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