- The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
- Assignments submitted through email will not be accepted.
- Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
- Students must mention question number clearly in their answer.
- Late submission will NOT be accepted.
- Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
- All answers 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): (Marks 15)
Question 1: (5 Marks)
Abdulaziz is the owner of a service company that provides consulting services and charges the clients for them. He uses a journal to record his business transactions. Below are some of the transactions that occurred in July 2024. For each transaction, apply the rules of double-entry accounting by preparing the journal entry in SAR currency and explain the effect on the accounting equation.
- On July 1, Abdulaziz invested SAR 50,000 cash in his business to start operations.
- On July 6, the company bought office equipment worth SAR 15,000 on credit from a supplier.
- On July 10, the company received SAR 5,000 cash in advance from customer for providing consulting services next month.
- On July 16, the company paid SAR 4,000 cash for utility bills for the month.
- On July 21, the company made a cash payment of SAR. 15,000 on the equipment that purchased on account on July 6th.
- On July 28, the company performed services worth SAR 6,000 and the bill was sent to the customer.
Question 2: (5 Marks)
What is the accounting cycle? Explain every step starting from analyzing transactions to preparing post-closing trial balance. (Marks5)
Question 3: (5 Marks)
ABC Consulting is a company that provides consulting services to clients in various industries. The following are the balances taken from the trial balance:
|
ABC Trial Balance 31/12/2023 |
||
|
Account |
Debit (SAR) |
Credit (SAR) |
|
Cash |
10,000 |
– |
|
Accounts Receivable |
15,000 |
– |
|
Supplies |
5,000 |
– |
|
Equipment |
50,000 |
– |
|
Accumulated Depreciation – Equipment |
– |
10,000 |
|
Accounts Payable |
– |
8,000 |
|
Unearned Revenue |
– |
12,000 |
|
Common Stock |
– |
40,000 |
|
Dividends |
5,000 |
– |
|
Service Revenue |
– |
60,000 |
|
Salaries Expense |
25,000 |
– |
|
Rent Expense |
10,000 |
– |
|
Depreciation Expense |
5,000 |
– |
|
Supplies Expense |
3,000 |
– |
|
Interest Expense |
2,000 |
– |
|
Total |
130,000 |
130,000 |
Required:
- Prepare the income statement for the year ended 31 December 2023.
- Prepare the statement of retained earnings for the year ended 31 December 2023.
- Prepare the balance sheet as at 31 December 2023.
