Natalie Preston Had the Following Transactions for Preston Business Services

question 41

Essay

Natalie Preston had the following transactions for Preston Business Services for 2016.
1)Provided services on account,$30,000.
2)Purchased $7,500 of office 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 office supplies still on hand was $750.
Required:
a)Show the effect of the above three events on the accounting equation.(You need to fill in the appropriate headings).
b)Set up the appropriate T-accounts and post each of the above transactions.
c)What is the amount of total assets at the end of 2016? What is the amount of net income for 2016?

---

Definitions:

General Explanation

A broad description or clarification that applies to a wide range of phenomena or situations, often used to simplify complex concepts.

Leveraged The Internet

Utilizes the internet as a pivotal resource or tool to enhance reach, efficiency, innovation, or competitiveness.

L.L. Bean

An American retail company specializing in clothing and outdoor recreation equipment, known for its customer service and quality products.

Competitive

A characteristic of entities (individuals or organizations) that strive to achieve and maintain an advantage over others by offering better quality, service, or price.