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 $32,400 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. YARD DESIGNS Accounting Equations for the Year 1 Stockholders' Assets Liabilities + Equity Event Cash Unearned Revenue Retained + Earnings Advance payment Revenue eamed 0 0 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 1 0