ACCT201 Assignment 1 Saudi Electronic Adjusting entries What do you understand by adjusting entries? Give examples (See the attachment) for full questions

ACCT201 Assignment 1 Saudi Electronic Adjusting entries What do you understand by adjusting entries? Give examples (See the attachment) for full questions FINANCIAL ACCOUNTING
ACCT 201
ASSIGNMENT 1
Last due date for submission 02 February 2019
You are required to work in this assignment individually. Any suspicious activities or
cheating will result zero grade in this assignment.
Student’s name:……………………………………………Student’s ID :………………….
Q1. What do you understand by adjusting entries? Give examples ( 3 marks)
Answer to Q1:
Q2. Following is the year-end adjusted trial balance for ABC COMPANY for the current year:
ABC COMPANY
Adjusted Trial Balance
December 31
Cash
Accounts receivable
Merchandise inventory
Office supplies
Accounts payable
Salaries payable
Common stock
Retained earnings
Dividends
Sales
Sales returns & allowances
Sales discounts
Cost of goods sold
Sales salaries expense
Advertising expense
Office salaries expense
Office supplies expense
Interest expense
Totals
Dr
SAR 67,400
46,000
50,000
800
Cr
16,000
850
50,000
75,530
5,000
500,000
4,500
4,250
382,450
44,000
8,150
24,325
450
5,055
SAR 642,380
SAR 642,380
Instructions: Prepare the closing entries at December 31 for the current year. ( 3 marks )
Answer to Q2:
Q3. What are the steps followed by the IASB in developing International Accounting Standards?
(2 marks)
Answer to Q3:
Q4. Prepare general journal entries on December 31 to record the following unrelated year-end
adjustments. (2 marks)
a. Estimated depreciation on office equipment for the year, SAR 2,000
b. The Prepaid Insurance account has a SAR 2,500 debit balance before adjustment. An
examination of insurance policies shows SAR 350 of insurance expired
c. The Prepaid Insurance account has a SAR 1,400 debit balance before adjustment. An
examination of insurance policies shows SAR 400 of unexpired insurance
d. The company has three office employees who each earn SAR200 per day for a five-day
workweek that ends on Friday. The employees were paid on Friday, December 26 and have
worked full days on Monday, Tuesday and Wednesday, December 29, 30 and 31.
Answer to Q4:

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