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:

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with higher elasticity indicating greater responsiveness.

Degree of Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, providing insight into the good's price sensitivity.

Availability of Substitutes

The presence of alternative products or services that consumers can choose instead of the primary product, affecting the demand and price elasticity of goods.

Demand for Gasoline

The consumer's desire and willingness to pay for gasoline, influenced by its price, consumer income, and the prices of substitutes and complements.