Yard Designs (YD) experienced the following events in Year 1, its first year of operation:

1. On October 1, Year 1, YD collected $31,200 for consulting services it agreed to provide during the next 12 months.
2. Adjusted the accounts to reflect the amount of consulting service revenue recognized in Year 1.

Required

Based on this information alone:

1. Record the events under an accounting equation.
2. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting period.
3. Ignoring all other future events, what is the amount of service revenue that would be recognized in Year 2?

A.

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
• Req C

Record the events under an accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign. Not all cells require input.)

	YARD DESIGNS Accounting Equation Year 1 Assets = Liabilities + Stockholders Equity Event Cash = Unearned Revenue + Retained Earnings Event = + Adjusting = + = +

B1.Prepare an income statement for the Year 1 accounting period. (Do not round intermediate calculations.)

	YARD DESIGNS Income Statement For the Year Ended December 31, Year 1

B2.Prepare a balance sheet for the Year 1 accounting period. (Do not round intermediate calculations.)

	YARD DESIGNS Balance Sheet As of December 31, Year 1 Assets Total assets Liabilities Total liabilities Stockholders Equity Total stockholders equity Total liabilities and stockholders equity

B3. Prepare the statement of cash flows for the Year 1 accounting period. (Do not round intermediate calculations. Enter cash outflows with a minus sign.)

	YARD DESIGNS Statement of Cash Flows For the Year Ended December 31, Year 1 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 Ending cash balance

C. Ignoring all other future events, what is the amount of service revenue that would be recognized in Year 2? (Do not round intermediate calculations.)

	Service revenue to be recognized in Year 2