Description
Solve paragraph B only
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Group Project
On October 1, 2018 Abdullah formed Accounting Consulting Co. to
provide accounting services. The following are September 30th, 2019
balances from its ledger (Saudi Riyal):
Cash 50,000, Accounts Receivable 20,000 , Office Supplies 5,000 , Office
Equipment 15,000, Accumulated Depreciation – Office Equipment 1,500 ,
Accounts Payable 8,500 , Owner capital 80,000
During the last quarter of the year 2019, the following transactions
occurred:
Oct 1, 2019
Oct 1, 2019
Oct 1, 2019
Oct10, 2019
Oct 20, 2019
Oct 31, 2019
Nov 15, 2019
Nov28
Nov30, 2019
December 2,
2019
December 31,
2019
December 31,
2019
hired 2 accountants for a weekly salary of S.R 2,000
each, payable monthly.
Paid S.R 24,000 to Alnabil Realtors for 6 month’s rent,
paid in advance.
Paid insurance for one year for S.R12,000
Conducted accounting services for customers, S.R
15,000, and only one-third of the amount was received.
Purchased a new computer for S.R 3,500 cash.
Paid employee’s salaries of S.R 40,000.
Signed a contract regarding Alburj’ bookkeeping work
and received S.R 100,000 cash from client as an advance
payment for services to be completed at the end of
January 2020
Received cash from clients on account, S.R 8000.
Paid employee’s salaries of S.R 35,000.
Received cash S.R 40,000, furniture S.R 20,000, car S.R
80,000 as an additional investment from the owner.
Withdrew S.R 3000 by the owner for personal use
Paid telephone bill and electricity bill for the period, S.R
1500, SR. 3000, respectively.
In addition to data mentioned on above transactions, Other data to be used
in adjustment:
– Office equipment depreciates annually on basis of 10% of its cost.
– The December salaries, S.R 25,000, have not been paid or recorded.
The office performs adjusting entries quarterly. Closing entries are
performed annually on December 31.
Instructions:
a. Show the effect of the above transactions on the Basic Accounting
Equation (chapter one)
b. Journalize and post quarter transactions.
c. Prepare December 31st, 2019 trail balance
d. Use the work sheet.
e. Journalize and post the necessary adjustments on December 31st, 2019.
f. Prepare an adjusted trail balance at December 31st, 2019.
g. Prepare the following financial statements:
1. Income statement.
2. Owner’s equity statement.
3. Classified balance sheet
h. Journalize and post-closing entries at December 31st, 2019.
i. Prepare post-closing trail balance at December 31st, 2019.
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