ACCT 101 SEU Cash for Issuing Common Stock Principles of Accounting Worksheet
I’m working on a Accounting question and need a sample draft to help me study.
- you must mention question number clearly in their answer.
- Avoid plagiarism, the work should be in your own words, copying from others or other resources without proper referencing will result in ZERO marks. No exceptions.
- All answered must be typed usingTimes New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism)
- The Assignment must be (WORD format only) via allocated folder.
Assignment Question(s):
Q1– Provide an example of each title here and then record the journal entries.
Following is the first given answer.
1-Purchasing Equipment for cash
Given answer:
ABC company purchased equipment for SAR20,000 cash .
Equipment20,000
Cash 20,000
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.
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
Consulting revenue |
|
SAR70,000 |
Rental revenue |
|
30,000 |
Supplies expense |
5,000 |
|
Rent expense |
20,000 |
|
Wages expense |
30,000 |
|