Question

Yard Professionals Inc. experienced the following events in 2018, its first year of operation: 1. Performed counseling services for $34.000 cash. 2. Purchased $8,200 of supplies on account. 3. A physical count on December 31, 2018, found that there was $1,560 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 Req B1 Inc Stmt Req B2 Bal Sheet Reg B3 CF Stmt Regs C and D Record the events under an accounting equation. (Enter any decrence to annuin halunnar...

multi step problem, i appreciate the help!

Answer 1

a)

YARD PROFESSIONALS INC.
Effect of Events on the Accounting Equation
	Assets		=	Liabilities	+	Stockholders Equity
Event	Cash	Supplies	=	Accounts Payable	+	Retained Earnings
Provided service	34,000.00		=		+	34,000.00
Purchased supplies		8,200.00	=	8,200.00	+
Used supplies		- 6,640.00	=		+	-   6,640.00
	34,000.00	1,560.00	=	8,200.00	+	27,360.00

b)

YARD PROFESSIONALS INC.
Income Statement
For the Year Ended December 31, 2018
Revenue	34,000.00
Expense	-   6,640.00
Net income	27,360.00

YARD PROFESSIONALS INC.
Balance Sheet
As of December 31, 2018
Assets
Cash	34,000.00
Supplies	1,560.00
Total Assets		35,560.00
Liabilities
Accounts Payable	8,200.00
Total liabilities		8,200.00
Stockholders' Equity
Retained earnings	27,360.00
Total stockholders' equity		27,360.00
Total liabilities and stockholders' equity		35,560.00

YARD PROFESSIONALS INC.
Statement of Cash flows
For the Year Ended December 31,2018
Cash flows from Operating Activities
Cash Received from Counselling Services	34,000.00
Net cash flow from Operating Activities		34,000.00
Cash flow from Investing Activities		-
Cash flow from financing Activities		-
Net change in Cash		34,000.00
Opening Cash Balance		-
Ending Cash Balance		34,000.00

c) Supplies Balance = 1,560

d) Supplies Expense = 6,640