Deborah Consultants Had the Following Accounts and Account Balances After

question 218

Essay

Deborah Consultants had the following accounts and account balances after adjusting entries.Assume all accounts have normal balances.Calculate the amount of service revenue and prepare the adjusted trial balance for Deborah Consultants as of December 31,2019.
$$\begin{array} { | l | r| } \hline \text { Cash } & \$ 6,000 \\\hline \text { Accounts Receivable } & 2,000 \\\hline \text { Office Supplies } & 1,800 \\\hline \text { Equipment } & 15,000 \\\hline \text { Accumulated Depreciation--Equipment } & 9,000 \\\hline \text { Deborah, Capital } & 3,000 \\\hline \text { Deborah, Withdrawals } &15,000 \\\hline \text { Service Revenue } & ? \\\hline \text { Salaries Expense } & 4,000 \\\hline \text { Rent Expense } & 800\\\hline \text { Depreciation Expense--Equipment } &1,500\\ \text { Supplies Expense } &500 \\\hline\end{array}$$

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Definitions:

Operating Assets

Operating assets are the assets that a business uses to generate revenue as part of its core operations, excluding investments and cash reserves.

Current Asset

An asset on the balance sheet that is expected to be sold or otherwise used up in the near term, typically within one year, including cash, inventory, and receivables.

Current Liability

Financial obligations a company must settle within one year, including accounts payable, taxes, and short-term loans.

Aggregate Accounts Receivable

The total amount of money owed to a company by its customers for goods or services delivered but not yet paid for.