3 HUMEWUIR 1SavedYard Professionals Inc. experienced the following events in Year 1, its first year of operation:1. Performed services for $29,000 cash.2. Purchased $5,200 of supplies on account.3. A physical count on December 31, Year 1, found that there was $1,060 of supplies on hand.RequiredBased 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 Year 1 accounting period.c. What is the balance in the Supplies account as of January 1, Year 2?d. What is the balance in the Supplies Expense account as of January 1, Year 2?Complete this question by entering your answers in the tabs below.Req B1 IncStmtReq B2 BalReq B3 CFReq AReg C and DSheetStmtRecord the events under an accounting equation. (Not all cells require input. Enter any decreases to account balances with aminus sign.)YARD PROFESSIONALS INC.Effect of Events on the Accounting EquationStockholders'AssetsLiabilitiesEquityEventAccountsRetained Complete this question by entering your answers in the tabs below.Reg B1 IncStmtReq B2 BalSheetReq B3 CFStmtReq AReq C and DRecord the events under an accounting equation. (Not all cells require input. Enter any decreases to account balances wminus sign.)YARD PROFESSIONALS INC.Effect of Events on the Accounting EquationStockholders'AssetsLiabilitiesEquityEventAccountsRetanedCashSuppliesPayableEarnings1. Provided service2. Purchased supplies3. Used suppliesTotals01 +< Req AReq B1 Inc Stmt >

Answered: b. Prepare an income state c. What is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

3 HUMEWUIR 1
Saved
Yard Professionals Inc. experienced the following events in Year 1, its first year of operation:
1. Performed services for $29,000 cash.
2. Purchased $5,200 of supplies on account.
3. A physical count on December 31, Year 1, found that there was $1,060 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 Year 1 accounting period.
c. What is the balance in the Supplies account as of January 1, Year 2?
d. What is the balance in the Supplies Expense account as of January 1, Year 2?
Complete this question by entering your answers in the tabs below.
Req B1 Inc
Stmt
Req B2 Bal
Req B3 CF
Req A
Reg C and D
Sheet
Stmt
Record the events under an accounting equation. (Not all cells require input. Enter any decreases to account balances with a
minus sign.)
YARD PROFESSIONALS INC.
Effect of Events on the Accounting Equation
Stockholders'
Assets
Liabilities
Equity
Event
Accounts
Retained

Expert Solution

Step 1

The accounting equation is a fundamental part of the balance sheet and a basic principle of accounting. The following is the equation: Liabilities + Shareholders' Equity = Assets

This equation lays the groundwork for double-entry accounting and highlights the balance sheet's structure. Every transaction in double-entry accounting impacts both sides of the accounting equation.

A balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a given point in time, as well as providing a basis for calculating rates of return and assessing its capital structure.