Problem: Module 1 Textbook Problem 8 Learning Objective: 1-9 Show how accounting for supplies affects financial statements Yard Professionals Inc, experienced the following events in Year 1, its first year of operation: 1. Performed services for $27,500 cash. 2. Purchased $5,000 of supplies on account. 3. A physical count on December 31, Year 1, found that there was $1,050 of supplies on hand. Required Based on this information alone: a. Record the events 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? d. What is the balance in the Supplies Expense account as of January 1, Year 2? Complete this question by entering your answers in the tabs below. Req A Req B1 Inc Stmt Req B2 Bal Sheet Req B3 CF Stmt Reg C and D + Record the events under an accounting equation. (Not all cells require input. Enter any decreases to account balances with a minus sign.) YARD PROFESSIONALS INC. Effect of Events on the Accounting Equation Assets Liabilities Stockholders' Equity Event Accounts Cash Retained Supplies Payable Earnings 1. Provided service 2. Purchased supplies 3. Used supplies Totals + + 0 Problem: Module 1 Textbook Problem 8 Learning Objective: 1-9 Show how accounting for supplies affects financial statements Yard Professionals Inc. experienced the following events in Year 1, its first year of operation: 1. Performed services for $27,500 cash. 2. Purchased $5,000 of supplies on account. 3. A physical count on December 31, Year 1, found that there was $1,050 of supplies on hand. Required Based on this information alone: a. Record the events 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? d. What is the balance in the Supplies Expense account as of January 1, Year 2? Complete this question by entering your answers in the tabs below. Req A Req B1 Inc Stmt Reg B2 Bal Sheet Req B3 CF Stmt ReqC and D Prepare an income statement for the Year 1 accounting period. YARD PROFESSIONALS INC. Income Statement For the Year Ended December 31, Year 1 5 Required Based on this information alone: a. Record the events 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? d. What is the balance in the Supplies Expense account as of January 1, Year 2? Complete this question by entering your answers in the tabs below. Reg A Req B1 Inc Stmt Req B2 Bal Sheet Req B3 CF Stmt Req C and D Prepare a balance sheet for the Year 1 accounting period. YARD PROFESSIONALS INC. Balance Sheet As of December 31, Year 1 Assets $ 0 Total assets Liabilities $ 0 Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity 0 0 $ Based on this information alone: a. Record the events 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? d. What is the balance in the Supplies Expense account as of January 1, Year 2? Complete this question by entering your answers in the tabs below. Stmt Req A Req B1 Inc Req B2 Bal Req B3 CF Stmt Sheet Reg C and D Prepare the statement of cash flows for the Year 1 accounting period. (Enter cash outflows with a minus sign.) YARD PROFESSIONALS INC. Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash 0 Ending cash balance $ 0 a. Record the events 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? d. What is the balance in the Supplies Expense account as of January 1, Year 2? Complete this question by entering your answers in the tabs below. Reg A Reg B1 Inc Req B2 Bal Reg B3 CF Stmt Sheet Stmt ReqC and D What is the balance in the Supplies account as of January 1, Year 2? What is the balance in the Supplies Expense acco of January 1, Year 2? C. Supplies d. Supplies expense
