Assignment Question(s):                                                         (Marks15)

Q1. On your own words, outline the accounting principles and assumptions and explain each one.                                                                                                   (Mark

 

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		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