All one hw question, please help Yard Professionals Inc. experienced the followi

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All one hw question, please help

Yard Professionals Inc. experienced the following events in Year 1, its first year of operation: 1. Performed services for $35,000 cash. 2. Purchased $6,000 of supplies on account. 3. A physical count on December 31, Year 1, found that there was $1,800 of suppies on hand. Required Based on this information alone a. Record the events in general ledger accounts under an accounting equation. (Enter any decreases to account baian minus sign.) YARD PROFESSIONALS INC. Effect of Events on the Accounting Equation for Year 1 Stockholders Assets Liabilitis Equity Event Retained Cash Supplies Accounts 1. Provided service 2. Purchased supplios 3. Used supplies

Explanation / Answer

a.

YARDI PROFESSIONAL INC.

b.

Income Statement for Yardi Professionals

Balance Sheet for Yardi Professionals

Cash Flow Statement for Yard Professionals

c. $4,200

d. Zero (0)

This is because expense account is not carried forward in next year. It closes this year itself in Income statement.

Sr. No. Event Cash Supplies = Accounts Payable + Retained Earnings 1 Provided Service 35,000 0 = 0 + 35,000 2 Purchased supplies - 6,000 = 6,000 + 0 3 Used Supplies 0 (4,200) = 0 + (4,200) Total 35,000 1,800 = 6,000 + 30,800

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