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?

Question

Quizplus · Accepted Answer

The Answer of 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?

Natalie Preston Had the Following Transactions for Preston Business Services