Fin. Statements & Acct. Std.

Post ID: 3339629

Overview

****The paper should be done and submitted in an excel file.****

**Step 7 should be in 1 paragraph fully answered, Step 8 should be 2-3 paragraphs**

Write each step as a subtitle beside the answer

((( THE DOCUMENTS ATTACHED ARE TO SHOW YOU THE WAY IT SHOULD BE ANSWERED, IT HAS TO BE THESE EXACT METHODS!!! )))

Khalid Al Mansoori opened a Bike Repair Shop in Dubai on March 1. During March, the following transactions were completed:

March 1: Invested AED15,000 cash into the business.
March 2: Purchased equipment for AED8,000, paying AED4,000 in cash and the balance on account.
March 4: Purchased repair supplies for AED1,500 on account.
March 6: Paid AED1,500 cash for a one-year insurance policy effective April 1.
March 12: Billed customers AED6,000 for repair services.
March 15: Paid AED2,000 cash on the amount owed for equipment and AED600 on the amount owed for supplies.
March 18: Paid AED2,500 cash for employee salaries.
March 20: Collected AED2,000 cash from customers billed on March 12.
March 25: Billed customers AED3,800 for repair services.
March 29: Paid AED300 cash for electricity and utilities for the shop.
March 31: Withdrew AED900 cash for personal use.

Instructions (Steps)

Journalize and post the March transactions.
Prepare a trial balance at March 31 on a worksheet.
Journalize and post the following adjusting entries.
- Earned but unbilled revenue at March 31 was AED1,200.
- Depreciation on equipment for the month was AED300.
- One-twelfth of the insurance expired.
- An inventory count shows AED600 of repair supplies on hand at March 31.
- Accrued but unpaid employee salaries were AED700.
Prepare the income statement and owner’s equity statement for March and a classified balance sheet at March 31.
Journalize and post-closing entries and complete the closing process.
Prepare a post-closing trial balance at March 31.
Illustrate how accounting principles were applied in meeting IFRS requirement, supported by specific examples from the above requirements.
Provide an analytical discussion of the financial statements, highlighting key insights into the financial performance and position of the business

Sources to use when solving the paper:

This video explains adjusting entries for accrued expenses:

This video explains adjusting entries for accrued revenues:

This video explains how to prepare an Adjusted Trial Balance.

This extra example explains adjusting entries in full.