ACCT 101 SEU Purchasing Equipment for Cash & Issuing Common Stocks Questions

I’m working on a Accounting question and need a reference to help me learn.

Please do not copy from the Internet to match the answers, you will receive a score of 0

A question file has been attached

– Provide an example of each title here and then record the journal entries

Following is the first given answer.

1-Purchasing Equipment for cash

Given answer:

ABC company purchased equipment for SAR20,000 cash .



2-Issuing common stocks receiving cash.

3-Providing service receiving cash.

4-Purchasing supplies on credit.

5-Borrowing money from a bank.

6-Paying employees their salaries.

Q2– What is the accrual basis of accounting? When should revenue and expense be recognized in the accrual basis? Provide an example. (1 Mark).

Q3– On your own words, explain the purpose and the importance of the income statement, and prepare the income statement for ABC company based on the following information taken from the trial balance in 2019

Consulting revenue


Rental revenue


Supplies expense


Rent expense


Wages expense


Prof. Angela


Calculate Price

Price (USD)
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