\begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ YARD DESIGNS } \\ \hline \multicolumn{1}{|c|}{ Balance Sheet } \\ \hline As of December 31, Year 1 \\ \hline \end{tabular} b. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting period. Note: In statement of cash flows, cash outflows should be indicated with a minus sign. c. Ignoring all other future events, what is the amount of service revenue that would be recognized in Year 2 ? Exercise 3-7A (Algo) Unearned items on financial statements LO 3-3 Yard Designs (YD) experienced the following events in Year 1 , its first year of operation: 1. On October 1, Year 1, YD collected $25,200 for consulting services it agreed to provide during the coming year. 2. Adjusted the accounts to reflect the amount of consulting service revenue recognized in Year 1. Required: Based on this information alone: a. Record the events under an accounting equation. Note: Enter any decreases to account balances with a minus sign