Question

Yard Professionals Inc, experienced the following events in 2018, its first year of operation: 1. Performed counseling services for $26,500 cash. 2. Purchased $7,200 of supplies on account. 3. A physical count on December 31, 2018, found that there was $1,510 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? Complete this question by entering your answers in the tabs below. Req A Reg B1 Inc Stmt Reg B2 Bal Sheet Reg 83 CF Stmt Reqs C and D Record the events under an accounting equation. (Enter any decreases to account balances with a minus sign.) YARD PROFESSIONALS INC. Effect of Events on the Accounting Equation Assets = Liabilities Event Accounts Cash Supplies - Payable Performed counseling services 2. Purchased supplies 3. Used supplies Totals Stockholders' Equity Retained Earnings

Answer 1

Ia Yard Professionals one Effect of Events on the Accounting Equation Stockholders! Assets Liabilities & Equity Accounts Retained Event Cash Supplies = payable + Earnings formed Counseling services $26,500 $0 $0 A $26,500 2. Purchased supplies $0 $7,200 = $7,200 + $0 3. Used supplies $0 $ (5,690) = 10 + $(5,690) - Totals $26,500 $1,510 = $7,200 + $20,810 Calculation: Used Supplies - Hand Purchased supplies - Supplies on = $7,200 - $1,510 = $5,690 Yared Professionals ane Income Statement for the year Ended December 31, 2018 Revenue $26,500 Expense $(5,690) Net income 1$ 20,810

Yard Professionals anu Balance sheet As of December 31, 2018 Asets Cash $26,500 supplies $ 1,510 $28,010 To tal assets Liabilities Accounts Payable $ 7,200 $ 7,200 Total Liabilities stockholders' Equity Retained Earnings $ 20,810 | Total Stockholders' Equity Total liabilities and stockholders' Equity $ 20 810 $ 28,010

Yard Professionals one Statement of cash flows for the Year Ended December 31, 2018 Cash flows from operating activities: Cash receipt from revenue Met cash flow from operating activities Cash flows from investing activities. Cash flows from financing activities Net Change in cash Plus: Beginning lash Balance Ending Cash Balance $26,500 $26,500 $ 0 $26,500 $ o $26,500 عا به وصية اکرا و (d, supplies expense $0 Calculation: ces the balance of the supplies account on January 1, 2019 is $1,510, the same as the December 31, 2018 balance cal, The balance of the supplies Expense account on January 1, 2018 is 80 because the expense. account was closed to retained Earnings at December 31, 2018.