Natalie Preston Had the Following Transactions for Preston Business Services

question 4

Essay

Natalie Preston had the following transactions for Preston Business Services for Year 1:
1)Provided services on account for $30,000.2)Purchased $7,500 of supplies on account.3)At the end of the year, an adjusting entry was prepared for the supplies that had been used. The amount of supplies still on hand was $750.
Required: a)Fill in the three components of the accounting equation. Then, show the effect of each of these three events on the accounting equation by entering the dollar amounts in the appropriate columns. (Put parentheses around amounts that decrease a component of the accounting equation.)

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Definitions:

Potential Customers

Individuals or organizations that might have an interest or need in a company's offerings but have not yet concluded a purchase transaction.

Market Section

A specific segment or part of a market that a business targets as part of its marketing and sales strategies.

Foot-In-The-Door Effect

An increase in compliance likelihood for a large request if a smaller request is agreed to first, reinforcing the concept of gradual commitment.

Social Facilitation Hypothesis

A theory suggesting that the presence of others can improve one's performance on tasks, especially those that are simple or well-learned.