Yard Professionals Inc. experienced the following events in 2018, its first year of operation:

Performed services for $35,000 cash.

Purchased $6,000 of supplies on account.

A physical count on December 31, 2018, found that there was $1,800 of supplies on hand.

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 2018 accounting period.

What is the balance in the Supplies account as of January 1, 2019?

What is the balance in the Supplies Expense account as of January 1, 2019?

Record the events under an accounting equation. (Enter any decreases to account balances with a minus sign.)

YARD PROFESSIONALS INC.

Effect of Events on the Accounting Equation

Event

Assets

=

Liabilities

+

Stockholders Equity

Cash

Supplies

=

Accounts Payable

+

Retained Earnings

1.

Provided service

=

+

2.

Purchased supplies

=

+

3.

Used supplies

=

+

Totals

=

+

Prepare the statement of cash flows for the 2018 accounting period.

YARD PROFESSIONALS INC.
Statement of Cash Flows
For the Year Ended December 31, 2018
Cash flows from operating activities
Net cash flow from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net change in cash

What is the balance in the Supplies account as of January 1, 2019? What is the balance in the Supplies Expense account as of January 1, 2019?

c.	Supplies
d.	Supplies expense