Exercise 2-9A (Static) Supplies on financial statements LO 2-5, 2-8

Yard Professionals Inc. experienced the following events in Year 1, its first year of operation:

Performed services for $35,000 cash.

Purchased $6,000 of supplies on account.

A physical count on December 31, Year 1, found that there was $1,800 of supplies on hand.

Required

Based on this information alone:

Record the events under an accounting equation.

Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting period.

What is the balance in the Supplies account as of January 1, Year 2?

What is the balance in the Supplies Expense account as of January 1, Year 2?

YARD PROFESSIONALS INC.
Income Statement
For the Year Ended December 31, Year 1

YARD PROFESSIONALS INC.
Balance Sheet
As of December 31, Year 1
Assets
Total assets
Liabilities
Total liabilities
Stockholders' Equity
Total stockholders' equity
Total liabilities and stockholders' equity