Exercise 3-7A (Algo) Unearned items on financial statements LO 3-3 49 Yard Designs (YD) experienced the...

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Exercise 3-7A (Algo) Unearned items on financial statements LO 3-3 49 Yard Designs (YD) experienced the following events in Year 1, its first year of operation: pints eBook Hint 1. On October 1, Year 1, YD collected $18,000 for consulting services it agreed to provide during the co 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. YARD DESIGNS Accounting Equations for the Year 1 Stockholders' Assets Liabilities + Event Unearned Cash Revenue Equity Retained Earnings Advance payment + Revenue earned + 0 = 0+ 0 3 9 2 ts eBook 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. YARD DESIGNS Income Statement For the Year Ended December 31, Year 11 Hint $ 0 Assets YARD DESIGNS Balance Sheet As of December 31, Year 1 Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity $ 69 $ 0 0 0 YARD DESIGNS Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities Net cash flow from operating activities $ 0 Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance 0 $ 0 c. Ignoring all other future events, what is the amount of service revenue that wou Service revenue to be recognized in Year 2 Exercise 3-7A (Algo) Unearned items on financial statements LO 3-3 49 Yard Designs (YD) experienced the following events in Year 1, its first year of operation: pints eBook Hint 1. On October 1, Year 1, YD collected $18,000 for consulting services it agreed to provide during the co 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. YARD DESIGNS Accounting Equations for the Year 1 Stockholders' Assets Liabilities + Event Unearned Cash Revenue Equity Retained Earnings Advance payment + Revenue earned + 0 = 0+ 0 3 9 2 ts eBook 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. YARD DESIGNS Income Statement For the Year Ended December 31, Year 11 Hint $ 0 Assets YARD DESIGNS Balance Sheet As of December 31, Year 1 Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity $ 69 $ 0 0 0 YARD DESIGNS Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities Net cash flow from operating activities $ 0 Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance 0 $ 0 c. Ignoring all other future events, what is the amount of service revenue that wou Service revenue to be recognized in Year 2