QUESTION 2 (Time: 25-30 minutes)

Noura started a business on January1 , 2020 called Elegance, Inc. Elegance is a retail company that

sells organic skin care. the following information was available on Elegance Inc. :

OMR 44,500	Cash Sales of skin care
25,500	Credit Sales of skin car
308	Advertisement
15,550	Capital
155	Supplies
4,000	Beginning Equity
5,000	Salaries
205	Prepaid Expenses
3702	Insurance
2350	Dividends
1,701	Tax

Requirements:

a. Using the above information, prepare the income statement for Elegance Inc, for the

month ended January1 , 2020.

(Rubrics: 0.25 mark for each correct element and correct form for Income Statement and

heading , 0.5 mark for the correct calculations of Net Income. Total = 2.5 marks)

b. Using the above information, prepare the statement of owners equity for Elegance Inc,

for the month ended January1 , 2020.

(Rubrics: 0.25 mark for each correct element and correct form for statement of owners

equity and heading , 0.5 mark for the correct calculations of Ending Equity. Total = 2.5

marks)