Reference no: EM132331480

PRINCIPLES OF ACCOUNTING

The assignment is covering:
Chapter 1: Introducing Accounting in Business
Chapter 2: Analyzing and Recording Transactions
Chapter 3:Adjusting Accounts and Preparing Financial Statements
Chapter 4: Reporting and Analyzing Merchandising Operations
Chapter 5: Reporting and Analyzing Inventories

Q1. Al-Ahmad Accounting Services completed these transactions in July:

a. Purchased office supplies on account, SAR 450
b. Completed work for a client on credit, SAR 1,500
c. Paid cash for the office supplies purchased in (a)
d. Completed work for a client and received SAR 800 cash
e. ReceivedSAR 1,500 cash for the work described in (b).
f. ReceivedSAR 3,000 in advance from a client for accounting services to be performed in September.
Prepare journal entries to record the above transactions. Explanations are not necessary.

Q2. Choose two accounting principles and two accounting assumptions and explain them in your word.

Q3. Explain how accounting adjustments affect financial statements.

Q4. On October 1, Saad Co. sold merchandise in the amount of SAR 5,800 to Neom Co., with credit terms of 2/10, n/30. The cost of the items sold is SAR 4,000. Saad Co. uses the perpetual inventory system. On October 4, Neom Co. returns some of the merchandise. The selling price of the merchandise isSAR 1,500, and the cost of the merchandise returned is SAR 1,050.

Record the entry or entries that Saad Co. must make on October 4th.