Reference no: EM132448650

Assignment Question(s):

Q1. From the information given, prepare a statement of retained earnings.

ABC corporation had an initial investment of SAR50,000 cash and other information was as follows:

Accounts payable                   SAR12,000
Office furnishings                    SAR40,000
Accounts receivable                23,000
Dividends                               6,000
Cash                                    17,200
Rent expense                          3,600
Fees earned                          30,000
Salaries expense                      6,200
Notes payable                         4,250
Telephone expense                     250

Q2. Explain the pronouncements issued by IASB.

Q3. Prepare general journal entries on December 31 to record the following unrelated year-end adjustments.

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.