Part Accounting Problem (50 marks)

Financial Statements are important for Financial Reporting Disclosure. AL-Naseem Company faced a problem how to prepare financial statement because they dont have accountant or a specialized person who can prepare correct financial statement. The person who prepare financial statement always make a mistake and mixing between income statement and statement of financial position. The following information found in the AL-Naseem Company Trail Balance. Required from you as an accountant to help AL-Naseem company to prepare:-

(A) An income statement. (40 marks)

(B) A retained earnings statement. (10 marks)

Account	Dr	Cr
Cash	20,000
Account Receivable	18,000
Account Payable		3000
Note Payable Short Term		2500
Prepaid Expenses	2325
Loans Short Term		1350
Beginning Inventory	37500
Offices	30,000
Accumulated Depreciation		8400
Buildings	10,000
Long Term Loans		13,000
Retained Earnings at the Beginning		4000
Capital		80,000
Goodwill	9000
Trademark	1000
Purchases	163,700
Purchases discount		1800
Fright in	3475
Sales		198950
Salaries Expenses	12100
Sales Return	7550
Other Revenues		950

The structure of this assignment might be:

Cover page

Part A Conceptual Framework for Financial Reporting

Title

Introduction

Your Assay

Part B Problem Solution

Marking criteria are:

Part A
1	Introduction and the structure	10/100
2	the important of the Conceptual Framework for Financial Reporting	10/100
3	Development of a Conceptual Framework; efforts to develop a common conceptual framework; when and how this effort started; Professions and organizations	10/100
4	Component of the Conceptual Framework for Financial Reporting	10/100
5	Your future expectation about the development of a Conceptual Framework for Financial Reporting	10/100
Part B
6	Preparation an income statement	40/100
7	Preparation a retained earnings statement	10/100