Exercise $3-7$A $($Algo$)$ Unearned items on financial statements LO $3-3$

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

On October $1,$ Year $1,$ YD collected $$33,600$ for consulting services it agreed to provide during the coming year.

Adjusted the accounts to reflect the amount of consulting service revenue recognized in Year $1.$

Required:

Based on this information alone:

Record the events under an accounting equation.

Note: Enter any decreases to account balances with a minus sign.

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.

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