Business Finance
ACCT 101 Saudi Electronic University Principles of Accounting Problems

Acct 101

Saudi electronic university

ACCT

Question Description

Need help with my Accounting question - I’m studying for my class.

  • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
  • Assignments submitted through email will not be accepted.
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  • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
  • Submissions without this cover page will NOT be accepted.

Assignment Question(s):(5 Marks)

Q1- Provide an example of each title here and then record the journal entries (2 Marks).

Following is the first given answer.

1-Purchasing Equipment for cash

Given answer:

ABC company purchased equipment for SAR20,000 cash .

Equipment20,000

Cash20,000

2-Issuing common stocks receiving cash.

3-Providing service receiving cash.

4-Purchasing supplies on credit.

5-Borrowing money from a bank.

6-Paying employees their salaries.

Q2- What is the accrual basis of accounting? When should revenue and expense be recognized in the accrual basis? Provide an example. (1 Mark).

Q3- On your own words, explain the purpose and the importance of the income statement, and prepare the income statement for ABC company based on the following information taken from the trial balance in 2019(2 Marks)

Consulting revenue

SAR70,000

Rental revenue

30,000

Supplies expense

5,000

Rent expense

20,000

Wages expense

30,000

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Final Answer

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1

ACCT 101: Accounting

Name
Institutional Affiliation

2

Question 1
Provide an example of each title here and then record the journal entries (2 Marks).
1-Purchasing Equipment for cash
Given answer:
ABC Company purchased equipment for SAR20,000 cash.
Equipment

20,000

Cash

20,000

2-Issuing common stocks receiving cash.
ABC Company issued 10,000 shares of common stock at $5 par value
Cash

50,000

Common Stock

50,000

3-Providing service receiving cash.
ABC Company performed services to a client worth 30,0...

FrankRose23 (2404)
University of Virginia

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