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

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Accounting

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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 $33,600 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. c. Ignoring all other future events, what is the amount of service revenue that would be recognized in Year 2 ? 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

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