Yard Professionals Inc. experienced the following events in 2018, its first year
ID: 2337778 • Letter: Y
Question
Yard Professionals Inc. experienced the following events in 2018, its first year of operation: 1. Performed counseling services for $27,500 cash. 2. Purchased $5,000 of supplies on account. 3. A physical count on December 31, 2018, found that there was $1,050 of supplies on hand. Required Based on this information alone: a. Record the events under an accounting equation b. Prepare an income statement, balance sheet, and statement of cash flows for the 2018 accounting period. c. What is the balance in the Supplies account as of January 1, 2019? d. What is the balance in the Supplies Expense account as of January 1, 2019? Answer is not complete. Complete this question by entering your answers in the tabs below Req B1 Inc Req B2 BaReq B3 CF Sheet Req A Stmt Stmt Reqs C and D Record the events under an accounting equation. (Enter any decreases to account balances with a minus sign.)Explanation / Answer
1-
Assets
=
Liabilities
+
stockholders equity
Event
cash
Supplies
performed counselling services
27500
0
=
0
+
27500
purchased supplies on account
0
5000
=
5000
+
0
supplies expense
0
-3950
=
0
+
-3950
total
27500
1050
5000
23550
2-
Income statement
revenue
27500
less expenses
supplies expense
3950
net income
23550
3-
balance Sheet
Assets
cash
27500
supplies
1050
total of assets
28550
4-
Liabilities and shareholders equity
account payable
5000
retained earning
23550
total of liabilities and shareholders equity
28550
5-
cash flow statement
net income
23550
decrease in supplies
3950
cash flow during the year
27500
6-
Balance in supplies account
5000-3950
1090
balance in supplies expense
0
1-
Assets
=
Liabilities
+
stockholders equity
Event
cash
Supplies
performed counselling services
27500
0
=
0
+
27500
purchased supplies on account
0
5000
=
5000
+
0
supplies expense
0
-3950
=
0
+
-3950
total
27500
1050
5000
23550
2-
Income statement
revenue
27500
less expenses
supplies expense
3950
net income
23550
3-
balance Sheet
Assets
cash
27500
supplies
1050
total of assets
28550
4-
Liabilities and shareholders equity
account payable
5000
retained earning
23550
total of liabilities and shareholders equity
28550
5-
cash flow statement
net income
23550
decrease in supplies
3950
cash flow during the year
27500
6-
Balance in supplies account
5000-3950
1090
balance in supplies expense
0
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