Yard Professionals Inc. experienced the following events in Year 1, its first year of operation: Performed services for $35,000 cash.
Purchased $6,000 of supplies on account.
A physical count on December 31, Year 1, found that there was $1,800 of supplies on hand.
Required:
Based on this information alone:
Record the events under an accounting equation.
Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting period.
What is the balance in the Supplies account as of January 1, Year 2