Problem: Module 1 Textbook Problem 8 Learning Objective: 1-9 Show how accounting for supplies affects financial statements Yard Professionals Inc. experienced the following events in Year 1, its first year of operation: ts Hint 1. Performed services for $15,000 cash. 2. Purchased $6,000 of supplies on account. 3. A physical count on December 31, Year 1, found that there was $1,250 of supplies on hand. Print 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. c. What is the balance in the Supplies account as of January 1, Year 2? d. What is the balance in the Supplies Expense account as of January 1, Year 2? 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 and D Record the events under an accounting equation. (Not all cells require input. Enter any decreases to account balances with a minus sign.) YARD PROFESSIONALS INC. 3. b. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting period. c. What is the balance in the Supplies account as of January 1, Year 2? d. What is the balance in the Supplies Expense account as of January 1, Year 2? 5 Complete this question by entering your answers in the tabs below. Hint Req A Req B1 Inc Stmt Req B2 Bal Sheet Req B3 CF Stmt Reg C and D Print Record the events under an accounting equation. (Not all cells require input. Enter any decreases to account balances with a minus sign.) YARD PROFESSIONALS INC. Effect of Events on the Accounting Equation Assets = Llabilities Event Stockholders Equity Retained Earnings 15,000 Cash Accounts Payable Supplies = 15,000 6,000 6,000+ 1. Provided service 2. Purchased supplies 3. Used supplies Totals 15,000 6,000 = 6,000 15,000