Assignment Question(s):(Marks 5)
Q1. Discuss three of the accounting principles
Assignment Question(s):(Marks 5)
Q1. Discuss three of the accounting principles and assumptions with examples.
(5 Mark)
Q2. Prepare the journal for each of following transactions. (Marks 5) 1. On June 1, Sara invested SAR 10,000 cash in her business to start operations. 2. On June 6, Sarah purchased inventory for SAR 6,000 on credit from a supplier. 3. On June 12, Sarah purchased inventory for SAR 2,000 cash from a supplier.
4. On June 15, Sarah borrowing 15,000 from a bank.
5. On June 31, Sarah paid SAR 4,000 cash to the supplier for the inventory purchased on credit earlier in the month.
Q3. Based on the following trial balance for United 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.
United Co.
Trial Balance December 31
Cash SR 7,000 Accounts receivable 475 Supplies 2,500 Equipment 17,000 Accounts payableSR 1220
Common stock10,000
Retained earnings11,155
Dividends 36,000 Revenue earned72,000
Supplies expense 3,400 Rent expense 6,000 Wages expense 22,000 Totals SR94,375 SR94,375