Reference no: EM132498243

ABC Co. organized as a proprietorship on January 1, 2019 and engaged in the following transactions during its first year of operation:

Jan 1: The owner invested SR 1,000,000 cash to start the company
Jan 31: The company purchased a piece of machinery on credit for SR 10,000.
Feb1: It purchased a truck by paying SR 50,000 and borrowing the remaining SR 25,000 required to complete the transaction.
Feb 3: The company had cash revenue of SR 100,000
Feb 16: Purchased a land for SR 150,000 on account.
Feb 25: Sold the land after one month for SR 150,000.
Feb28: Borrowed SR 150,000 from a local bank.
Mar 6: Received an electricity expense invoice of SR 10,000 to be paid on April 15.
Mar 17: Paid SR 50,000 salaries for its employees in cash.
Apr 5: Paid a liability of SR 32,000.
Apr 8: The owner withdrew SR 40,000 cash.
Apr 15: paid the electricity expense invoice received on March 6.
Apr 20: Provided services for its clients for SR 320,000 on account.
Apr 22: Incurred 5,400 of advertising costs on account.
May 7: Collected an account receivable of SR 120,000
May 30: Purchased a computer on credit for SR 6,000.
June 25: Paid office rent in advance of SR 15,000 in cash, for the 6 months starting from July 1 till December 31, 2019.
July 1: Purchased some supplies to be used during the rest of the year for SR 1,000 on account.
July 25: Paid Dividends for the owner totaling SR 20,000.
Aug 1: Paid the advertising expenses incurred on April 22.
Oct 6: Received $30,000 for services to be performed during December 2019.

Question 1: Prepare the income statement, statement of Owner's Equity and the balance sheet of ABC Co. as of December 2019.

Question 2: Prepare the closing entries on December 31, 2019.

Question 3: Prepare the after closing Trial Balance as of December 31, 2019.