ASSIGNMENT
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)
| ABC Co.
Trial Balance December 31 |
||
| 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 |
Based on the following trial balance for ABC Co, prepare an income statement, statement of retained earnings and a balance sheet.
