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.) b) Draw a T-account for each of the accounts that

are affected by these transactions and record each of the transactions in the T-accounts.c) Determine the amount of total assets at the end of Year 1. d) Determine the amount of net income for Year 1.

What will be an ideal response?

a) 


b)

 
c) $30,750
d) $23,250

c) Total assets: = $30,000 + $750 = $30,750
d) Net income = $30,000 ? $6,750 = $23,250