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: 1. Performed services for $23,000 cash. 2. Purchased $4,400 of supplies on account. 3. A physical count on December 31, Year 1, found that there was $1,020 of supplles on hand. 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. Reg A Reg B1 Inc Stmt Req B2 Bal Sheet Reg B3 CF Stmt Reg Cand D YARD PROFESSIONALS INC. Effect of Events on the Accounting Equation Assets Liabilities Event Stockholders' Equity Retained Earnings Cash Supplies Accounts Payable + + + 1. Provided service 2. Purchased supplies 3. Used supplies Totals 1111111 KROGA Req B1 Inc Stmt det YARD PROFESSIONALS INC. Income Statement For the Year Ended December 31, Year 1 YARD PROFESSIONALS INC. Balance Sheet As of December 31, Year 1 Assets Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity YARD PROFESSIONALS INC. 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 c. Supplies d. Supplies expense