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Posted: Wed Jul 06, 2022 6:26 am
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Yard Designs (YD) experienced the following events in Year 1, its first year of operation: 1. On October 1, Year 1, YD collected $21,600 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: 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. langring all other future events, what is the amount of service revenue that would be recognized in Year 2?
Event Event Adjusting YARD DESIGNS Accounting Equation Year 1 Assets = Liabilities + Unearned Revenue Cash 11 11 IE 0= + + + 0 + Stockholders' Equity Retained Earnings 0 INTREGUT TINATION
YARD DESIGNS Income Statement For the Year Ended December 31, Year 1 $ 0
Assets Total assets Liabilities YARD DESIGNS Balance Sheet As of December 31, Year 1 Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity $ $ $ 0 0 0 0
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 $ $ 0 0 0
Service revenue to be recognized in Year 2
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Event Event Adjusting YARD DESIGNS Accounting Equation Year 1 Assets = Liabilities + Unearned Revenue Cash 11 11 IE 0= + + + 0 + Stockholders' Equity Retained Earnings 0 INTREGUT TINATION
YARD DESIGNS Income Statement For the Year Ended December 31, Year 1 $ 0
Assets Total assets Liabilities YARD DESIGNS Balance Sheet As of December 31, Year 1 Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity $ $ $ 0 0 0 0
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 $ $ 0 0 0
Service revenue to be recognized in Year 2