Overview
• THE ASSIGNMENT MUST BE SUBMITTED ON BLACKBOARD (WORD FORMAT ONLY) VIA ALLOCATED FOLDER.
• ASSIGNMENTS SUBMITTED THROUGH EMAIL WILL NOT BE ACCEPTED.
• STUDENTS ARE ADVISED TO MAKE THEIR WORK CLEAR AND WELL PRESENTED;MARKS MAY BE REDUCED FOR POOR PRESENTATION. THIS INCLUDES FILLING YOUR INFORMATION ON THE COVER PAGE.
• STUDENTS MUST MENTION QUESTION NUMBER CLEARLY IN THEIR ANSWER.
• LATE SUBMISSION WILL NOT BE ACCEPTED.
• Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
• All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism.
• Submissions without this cover page will NOT be accepted.
Assignment Question(s): (15 Marks)
Q1: Discuss the importance of the following accounting principles in preparing financial statements:
1. Revenue Recognition Principle
2. Matching Principle
3. Full Disclosure Principle
In your answer, explain how each principle works, why it is important, and give one practical example for each.
Q2: For each of the following transactions, show the effect on the accounting equation (Assets = Liabilities + Equity). Indicate whether each element increases, decreases, or remains unchanged.
Transactions:
1. The company issues common stock for $20,000 cash.
2. The company pays $3,000 of its accounts payable.
3. The company provides services to a client on account for $5,000.
4. The company declares and pays $1,500 in dividends.
5. The company purchases supplies worth $2,000 on credit.
Q3: A company completed the following transactions in January:
1. Issued $10,000 of common stock for cash.
2. Purchased equipment for $4,000 cash.
3. Provided services to clients on account for $6,000.
4. Paid $1,500 for utilities expense.
5. Declared and paid $1,000 in dividends.
Prepare the following statements
• Income Statement
• Statement of Retained Earnings
• Balance Sheet
IMPORTANT NOTE: Answer in your own words, DO NOT COPY from slides, fellow student, or internet source without proper citation.
Answers Page.