- please use your own words dont copy and paste - please use keyboard (don't use handwriting) - please no plagiarism - All answered must be typed using Times New Roman (size 12, double-spaced) font.

ACCT 101- Principles of Accounting

Assignment Question(s):

Q1- Provide an example of each title here and then record the journal entries

Following is the first given answer.

1-Purchasing Equipment for cash

Given answer:

ABC company purchased equipment for SAR20,000 cash .

Equipment 20,000

Cash 20,000

2-Issuing common stocks receiving cash.

3-Providing service receiving cash.

4-Purchasing supplies on credit.

5-Borrowing money from a bank.

6-Paying employees their salaries.

Q2- What is the accrual basis of accounting? When should revenue and expense be recognized in the accrual basis? Provide an example.

Q3- On your own words, explain the purpose and the importance of the income statement, and prepare the income statement for ABC company based on the following information taken from the trial balance in 2019

Consulting revenue		SAR70,000
Rental revenue		30,000
Supplies expense	5,000
Rent expense	20,000
Wages expense	30,000