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Assignment - Accounting Questions
Q1. In 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 a 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
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