Yard Professionals Inc. experienced the following events in 2018, its first year

ID: 2333046 • Letter: Y

Question

Yard Professionals Inc. experienced the following events in 2018, its first year of operation:

Performed services for $35,000 cash.

Purchased $6,000 of supplies on account.

A physical count on December 31, 2018, found that there was $1,800 of supplies on hand.

Required

Based on this information alone:

Record the events under an accounting equation.

Prepare an income statement, balance sheet, and statement of cash flows for the 2018 accounting period.

What is the balance in the Supplies account as of January 1, 2019?

What is the balance in the Supplies Expense account as of January 1, 2019?

Record the events under an accounting equation. (Enter any decreases to account balances with a minus sign.)

Prepare the statement of cash flows for the 2018 accounting period.

What is the balance in the Supplies account as of January 1, 2019? What is the balance in the Supplies Expense account as of January 1, 2019?

A. Recording events under Accounting equation.

1. provided services: Asset (Cash) 35000 = Liabilities 0 + Shareholder Equity ( Retained Earnings - Service revenue) 35000

2. Purchased supplies: Asset ( supplies) 6000 = Liabilities (Vendor) 6000+ Shareholers Equity 0

3. Used supplis: Asset (Supplies) -4200 = Liabilities 0 + shareholder Equity( Retained earnings - Supply Exenses) 4200

B. Staement of Cash flow.

Cash flow from operating activities.

Revenue from services 35000

Purchase of Supplies. -6000

Net cash flow from operating Activities 29000

Cash flow from investing activities 0

Cash flow from Financing activities 0

Net Change in cash. 29000

C. Baances as of January 1,2019

Supplies 1800

Supplies Expenses 4200

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