Describe the process of recording and communicating financial information.

1

Identify the effects of business transactions on reported financial information. 2

Prepare financial statements according to GAAP.

4

Part 1

Part 1

Part 2

Part A:

On January 1, 2016 the White Rose Company was established with a share capital of 2 million

shares. The par value of each share is AED 5. The accounting period of the Company ends on

December 31 of each year. The Company is to provide business and accounting services to

customers.

The following are the transactions that took place in the first month of the year

1. On January 2, the Company issued 100,000 shares at par value and collected the

amount in cash.

2. On January 3, the Company purchased furniture for AED 50,000 cash.

3. On January 5, the Company purchased equipment with an invoice amount of AED

School of Business Administration Individual Assignment 1 (15 marks) Due Date: October 13, 2016 (before 8 pm) Instructor: Professor Mohamed Ibrahim This assignment deals with the following course learning outcomes (CLOs) No. CLO 1 2 3 PLO Question Describe the process of recording and communicating financial information. 1 Identify the effects of business transactions on reported financial information. 2 Prepare financial statements according to GAAP. 4 Part 1 Part 1 Part 2 Part A: On January 1, 2016 the White Rose Company was established with a share capital of 2 million shares. The par value of each share is AED 5. The accounting period of the Company ends on December 31 of each year. The Company is to provide business and accounting services to customers. The following are the transactions that took place in the first month of the year 1. On January 2, the Company issued 100,000 shares at par value and collected the amount in cash. 2. On January 3, the Company purchased furniture for AED 50,000 cash. 3. On January 5, the Company purchased equipment with an invoice amount of AED 50,000. The Company paid AED 30,000 cash and signed a note payable in the amount of AED 20,000 that was due at the end of March 2016. 4. On January 8, the Company provided service to customers of AED 150,000 cash. 5. On January 10, the Company purchased office supplies on credit in the amount of AED 25,000. 6. On January 12, the Company provided services to customers on account in the amount of AED 90,000. 7. On January 15, the Company paid the telephone bill for AED 5,000 cash. 8. On January 16, the Company paid salaries and wages in the amount of AED 75,000. 9. On January 17, the Company paid water and electricity bills in the amount of AED 12,000. 10. On January 22, the Company collected AED 50,000 from its customers. 11. On January 24, the Company paid its supplies AED 15,000. 12. On January 26, the Company paid general expenses in the amount of AED 8,000. 13. On January 30, the Company paid the monthly rent in the amount of AED 60,000. Required: 1. Prepare the general journal entries for January 2016 (6 marks). 2. Post the general journal entries to the ledger accounts (2 marks). 3. Prepare a trial Balance as of January 31, 2016 (1 mark). Part B: Assume the White Rose Company has the following additional information on January 21, 2016: 1. The remaining unused office supplies were estimated to be AED 20,000. 2. The Company owes its employees AED 30,000 in salaries and wages. Required: 1. Prepare the necessary adjusting entries (2 marks). 2. Post the adjusting entries to the appropriate accounts (1 mark) 3. Prepared an adjusted trial balance at the end of January 2016 (1 mark). 4. Prepare an income statement for the month of January 2016 (1 mark)