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Assignment Question(s):(Marks 5) Q1. Discuss three of the accounting principles

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Assignment Question(s):(Marks 5)
Q1. Discuss three of the accounting principles and assumptions with examples.
(5 Mark)
Q2. Prepare the journal for each of following transactions. (Marks 5)
On June 1, Sara invested SAR 10,000 cash in her business to start operations.
On June 6, Sarah purchased inventory for SAR 6,000 on credit from a supplier.
On June 12, Sarah purchased inventory for SAR 2,000 cash from a supplier.
On June 15, Sarah borrowing 15,000 from a bank.
On June 31, Sarah paid SAR 4,000 cash to the supplier for the inventory purchased on credit earlier in the month.
Q3. Based on the following trial balance for United Co, prepare an income statement, statement of retained earnings and a balance sheet. The company made no additional investments in the company during the year.

United Co.
Trial Balance
December 31

Cash
SR 7,000

Accounts receivable
475

Supplies
2,500

Equipment
17,000

Accounts payable
SR1220

Common stock
10,000

Retained earnings
11,155

Dividends
36,000

Revenue earned
72,000

Supplies expense
3,400

Rent expense
6,000

Wages expense
22,000

Totals
SR94,375
SR94,375

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