Assignment Question(s):(Marks15)
Q1. On your own words, outline the accounting principles and assumptions and explain each one.(Marks5)
Q2. What is the accounting cycle? Explain every step starting from analyzing transactions to preparing post-closing trial balance.(Marks5)
Q3. Based on the following trial balance for ABC Co, prepare an income statement, statement of retained earnings and a balance sheet. The company made no additional investments in the company during the year.(Marks5)
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ABC Co. Trial Balance December 31 |
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|
Cash |
SR 6,500 |
|
|
Accounts receivable |
475 |
|
|
Supplies |
2,500 |
|
|
Equipment |
17,000 |
|
|
Accounts payable |
SR745 |
|
|
Common stock |
10,000 |
|
|
Retained earnings |
11,155 |
|
|
Dividends |
36,000 |
|
|
Revenue earned |
72,000 |
|
|
Supplies expense |
3,425 |
|
|
Rent expense |
6,000 |
|
|
Wages expense |
22,000 |
|
|
Totals |
SR93,900 |
SR93,900 |