Exercise 3-2A

Exercise 3-2A Supplies on financial statements 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 supplies on hand. Required Based on this information alone: a. Record the events in accounts 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? Exercise 3-3A Show how prepaid items affect a financial statements model On June 1, Year 1, Hamlin, Inc. paid $12,000 for 12 months rent on its warehouse in Huntsville, Exercise 3-2A Supplies on financial statements 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 supplies on hand. Required Based on this information alone: a. Record the events in accounts under an accomting cquation. 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, Yeat 2? Exercise 3-3A Show how prepaid items affect a financial statements model On June 1. Year 1. Hamlin, Inc, paid $12,000 for 12 months rent on its warehouse in Huntsville