Exercise 3-7A 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 $22,800 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. (Do not round Intermediate calculations. Enter any decreases to account balances with a minus sign.) Event YARD DESIGNS Accounting Equations for the Year 1 Stockholders Assets Liabilities Equity Unearned Retained Cash Revenue Earnings 22,800 - 22,800+ (5,700) 5,700 22,800 17.100 5,700 Event Adj mework-Ch.3 Saved You received partial credit in ti 2 21:02:51 YARD DESIGNS Balance Sheet As of December 31, Year 1 Assets DOK Total assets Liabilities $ nt Total liabilities Stockholders' Equity $ 0 Total stockholders' equity Total liabilities and stockholders' equity 0 $ 0 VARN DESIGN