FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 .
Cash 20,000
Consulting Revenue. 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
|
Consulting revenue |
|
SAR70,000 |
|
Rental revenue |
|
30,000 |
|
Supplies expense |
5,000 |
|
|
Rent expense |
20,000 |
|
|
Wages expense |
30,000 |
|
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