Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information pertains to a company on December 31, 2019. The calendar year is used as the annual reporting period 1. The company's weekly

The following information pertains to a company on December 31, 2019. The calendar year is used as the annual reporting period 1. The company's weekly wages are 25,000 riyals, paid every Thursday for a five-day work week. Let's say December 31, 2019 falls on Sunday, but employees will be paid on Thursday, January 4, 2020. 2. On July 1, 2018, the company purchased equipment worth 17,000 riyals, whose service life is expected to expire after five years, and at that time it will become worthless (without residual value). 3. On September 1, 2019, the company paid 3,000 riyals for 12-month insurance. 4. On December 29, 2019, the company provided services in the amount of 6,000 riyals and did not issue an invoice for them and did not receive the amount until December 31, 2019. 5. The office supplies account contains a debit balance of 3,200 riyals on December 31, 2018. Office supplies worth 1,450 riyals were purchased during 2019. After the in-kind inventory of office supplies at the end of the year, it was found that there were still supplies worth 2,400 riyals. 6. The company was entitled to interest income of 600 riyals from its investments in a project, but it did not record it in the books until December 31, 2019, and those interests are scheduled to be collected on January 8, 2020 7. Half of the work related to the cash amount of 8,000 riyals, which was received in advance during this period, in exchange for providing services, has been carried out.

Required: Record the necessary adjustment entries for the financial statements for the fiscal year ending on December 13, 2019

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Foundations and Evolutions

Authors: Michael R. Kinney, Cecily A. Raiborn

9th edition

9781285401072, 1111971722, 1285401077, 978-1111971724

More Books

Students also viewed these Accounting questions