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 hired 2 accountants for a weekly salary of S.R 2,000 each, payable monthly. Oct 1, 2019 Paid S.R 24,000 to Alnabil Realtors for 6 month’s rent, paid in advance. Oct 1, 2019 Paid insurance for one year for S.R12,000 Oct10, 2019 Conducted accounting services for customers, S.R 15,000, and only one-third of the amount was received. Oct 20, 2019 Purchased a new computer for S.R 3,500 cash. Oct 31, 2019 Paid employee’s salaries of S.R 40,000. Nov 15, 2019 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 Nov28 Received cash from clients on account, S.R 8000. Nov30, 2019 Paid employee’s salaries of S.R 35,000. December 2, 2019 Received cash S.R 40,000, furniture S.R 20,000, car S.R 80,000 as an additional investment from the owner. December 31, 2019 Withdrew S.R 3000 by the owner for personal use December 31, 2019 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: Classified balance sheet
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,
During the last quarter of the year 2019, the following transactions occurred:
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Oct 1, 2019 |
hired 2 accountants for a weekly salary of S.R 2,000 each, payable monthly. |
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Oct 1, 2019 |
Paid S.R 24,000 to Alnabil Realtors for 6 month’s rent, paid in advance. |
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Oct 1, 2019 |
Paid insurance for one year for S.R12,000 |
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Oct10, 2019 |
Conducted accounting services for customers, S.R 15,000, and only one-third of the amount was received. |
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Oct 20, 2019 |
Purchased a new computer for S.R 3,500 cash. |
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Oct 31, 2019 |
Paid employee’s salaries of S.R 40,000. |
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Nov 15, 2019 |
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 |
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Nov28 |
Received cash from clients on account, S.R 8000. |
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Nov30, 2019 |
Paid employee’s salaries of S.R 35,000. |
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December 2, 2019 |
Received cash S.R 40,000, furniture S.R 20,000, car S.R 80,000 as an additional investment from the owner. |
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December 31, 2019 |
Withdrew S.R 3000 by the owner for personal use |
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December 31, 2019 |
Paid telephone bill and electricity bill for the period, S.R 1500, SR. 3000, respectively. |
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In addition to data mentioned on above transactions, Other data to be used in adjustment:
- Office equipment
- The December salaries, S.R 25,000, have not been paid or recorded.
The office performs
Instructions:
Classified balance sheet
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