Nizamudin had saved some cash and decided to start a Small Business called ABC CARGO. The business

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Question:

Nizamudin had saved some cash and decided to start a Small Business called ABC CARGO. The business will have a monthly accounting cycle. They have started their business on May 1st, 2019. The following are some events that happened in 2019.

1. May 1. Nizamudin invested 50,000 SAR in cash and used Trucks and other equipment cost 60,000 SAR in exchange for ordinary shares in ABC CARGO.

2. May 1. ABC CARGO rented a parking lot that cost 60,000 SAR annually. The full payment due in Apr.30, 2020.

3. May 2. ABC CARGO paid 72,000 SAR for a one-year insurance policy for the used truck that will expire Apr.30, 2020

4. May 3. ABC CARGO purchased some tools and other supplies from SACO signing 5 months note payable for SAR 30,000. The note required ABC CARGO to pay interest at an annual rate of 20%.

5. May 5. ABC CARGO purchased cell phone and other electronic equipment that cost 5000 SAR from Jarir. 2,000 SAR was paid in cash and the remaining on account.

6. May 5. ABC CARGO purchases A dolly tools and set of ratchet straps to secure cargo and other equipment for 7,000 SAR cash.

7. May 7. ABC CARGO haired 2 drivers starting Monday May 6, 2019. Each driver agreement set the salary to be 720 SAR for a six-day workweek (Sunday is off day), and the salaries will be paid on the seventh day of every month. First payment is on July 7, 2019.

8. May 8. ABC CARGO signed an advertisement contract with haraj.com website for advertisement that cost 5000 SAR the contract started on May 13. ABC CARGO paid 1,000 SAR on May 8 as a down payment and agreed to pay the balance due after the advertisement.

9. May 13. The first day of business, haraj.com announced the opening day on its website, and ABC CARGO paid the balance due.

10. May 13. ABC CARGO received 30,000 SAR for delivery services from Riyadh to Jeddah.

11. May 14. ABC CARGO received 4,000 SAR in cash from a client for a reservation of a delivery service to be provided on May 19, 2019.

12. May 15. ABC CARGO provided services for 6,000 SAR to Ahmed’s brother and he agreed to pay the amount due later.

13. May 16 ABC CARGO received 1000 SAR cash in advance for a reservation of a delivery service. The service should be provided on June 2, 2019.

14. May 19. ABC CARGO provided the service (paid on May 14)

15. May 20. ABC CARGO received 3000 SAR from Ahmed’s brother

16. May 25. ABC CARGO paid 5,500 SAR Maintenance expenses.

17. May 29. ABC CARGO paid 500 SAR cash dividends to shareholders.

Required:

Apply the accounting cycle and worksheet using excel

1. Analyze business transaction

2. Journalize the transaction

3. Post to Ledger accounts.

4. Prepare an unadjusted trial balance

5. Journalize and post adjusting entries.

Extra adjustment data appears on May 31, 2019 consist of: § tools, and other supplies on hand 8000 SAR. § Depreciation on all assets 1300 SAR

6. Prepare an adjusted trial balance

7. Prepare the 4 financial statements (Income Statement, retained earnings statement, Statement of Financial position, and cashflow statement) following the standards.

8. Journalize and post closing entries

9. Prepare a Post-closing trial balance Note that the excel file should include 8 sheets (with linked cells and prober formula) Sheet 1- Journal (has all the entries: general, adjusting, and closing entries) Sheet 2- T-Accounts (has all the T-Accounts after posting: general, adjusting, and closing entries) Sheet 3- Unadjusted trial balance Sheet 4- worksheet Sheet 5- Adjusted trial balance Sheet 6- Financial Statements (Income statement, retained earnings Statement, Statement of Financial Position)