Q1/ On your own words, outline the accounting principles and assumptions and explain each one. Q2/ What
Question:
Q1/ On your own words, outline the accounting principles and assumptions and explain each one.
Q2/ What is the accounting cycle? Explain every step starting from analyzing transactions to preparing post-closing trial balance.
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.
ABC Co. Trial Balance December 31 | ||
Cash | SR 6,500 | |
Accounts receivable | 475 | |
Supplies | 2,500 | |
Equipment | 17,000 | |
Accounts payable | SR 745 | |
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 |
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton