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Yard Designs (YD) experienced the following events in Year 1, its first year of operation: On October 1, Year 1, YD collected $26,400 for consulting
Yard Designs (YD) experienced the following events in Year 1, its first year of operation:
- On October 1, Year 1, YD collected $26,400 for consulting services it agreed to provide during the next 12 months.
- Adjusted the accounts to reflect the amount of consulting service revenue recognized in Year 1.
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.
- Ignoring all other future events, what is the amount of service revenue that would be recognized in Year 2?
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