Check my work 3 Exercise 3.7A (Algo) Unearned items on financial statements LO 3-3 Yard Designs (YO) experienced the following events in Year 1, its first year of operation 1 On October 1, Year 1. Yo collected $19,200 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 (Enter any decreases to account balances with a minus sign.) YARD DESIONS Accounting Equations for the Year Assets = Liabilities Unearned Cash Revenue 19,200 - 19 200 - Event Stockholders Equity Retained Earnings Advance payment Revenue carried 19.200 - 19,200 + 5 points b. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting period. (In statement of cash flows, cash outflows should be indicated with a minus sign) YARD DESIGNS income Statement For the Year End December 31 Year! 0 5 points YARD DESIGNS Balance Sheet As of December 31, Year 1 eBook Assets Print $ 0 Total assets Liabilities $ 0 Total liabilities Stockholders' Equity 0 Total stockholders' equity Total liabites and stockholders' equity $ 0 ins YARD DESIGNS Statement of Cash Flows For the Year Ended December 31 Year 1 Cash flows from operating activities book Print $ 0 Nel cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Not change in cash 0 Ending cash balance $ 0 c. Ignoring all other future events, what is the amount of service revenue that would be recognized in Year 2? Service revenue to be cognized in Year 2