read this texxt and provide an outline in bulelt format in max 100 words :Assignment Question(s):						            (Marks 15)
Question 1:						                              (5 Marks)
Abdulaziz is the owner of a service company that provides consulting services and charges the clients for them. He uses a journal to record his business transactions. Below are some of the transactions that occurred in July 2024. For each transaction, apply the rules of double-entry accounting by preparing the journal entry in SAR currency and explain the effect on the accounting equation.
1.	On July 1, Abdulaziz invested SAR 50,000 cash in his business to start operations.
2.	On July 6, the company bought office equipment worth SAR 15,000 on credit from a supplier.
3.	On July 10, the company received SAR 5,000 cash in advance from customer for providing consulting services next month.
4.	On July 16, the company paid SAR 4,000 cash for utility bills for the month.
5.	On July 21, the company made a cash payment of SAR. 15,000 on the equipment that purchased on account on July 6th.
6.	On July 28, the company performed services worth SAR 6,000 and the bill was sent to the customer.

Question 2:						                                 (5 Marks)
What is the accounting cycle? Explain every step starting from analyzing transactions to preparing post-closing trial balance.                                                                      (Marks5)

Question 3:					                                          (5 Marks)
ABC Consulting is a company that provides consulting services to clients in various industries. The following are the balances taken from the trial balance:
ABC
Trial Balance
31/12/2023
Account	Debit (SAR)	Credit (SAR)
Cash	10,000	-
Accounts Receivable	15,000	-
Supplies	5,000	-
Equipment	50,000	-
Accumulated Depreciation - Equipment	-	10,000
Accounts Payable	-	8,000
Unearned Revenue	-	12,000
Common Stock	-	40,000
Dividends	5,000	-
Service Revenue	-	60,000
Salaries Expense	25,000	-
Rent Expense	10,000	-
Depreciation Expense	5,000	-
Supplies Expense	3,000	-
Interest Expense	2,000	-
Total	130,000	130,000

Required:
1.	Prepare the income statement for the year ended 31 December 2023.
2.	Prepare the statement of retained earnings for the year ended 31 December 2023.
3.	Prepare the balance sheet as at 31 December 2023.

















Answers
Question 1:
Point 1)
Date	Description	P/R	Debit	Credit
July 1	Cash		50,000 SAR	
	Capital 			50,000 SAR 
Effect on Accounting Equation:
•	Assets increase by SAR 50,000 (Cash).
•	Owner's Equity increases by SAR 50,000 (Capital).
•	Equation: Assets = Liabilities + Owner's Equity.

Point 2)
Date	Description	P/R	Debit	Credit
July 6	Office Equipment		15,000 SAR	
	Accounts Payable 			15,000 SAR
Effect on Accounting Equation:
•	Assets increase by SAR 15,000 (Office Equipment).
•	Liabilities increase by SAR 15,000 (Accounts Payable).
•	Equation: Assets = Liabilities + Owner's Equity.

Point 3)
Date	Description	P/R	Debit	Credit
July 10	Cash		5,000 SAR	
	Unearned Revenue 			5,000 SAR
Effect on Accounting Equation:
•	Assets increase by SAR 5,000 (Cash).
•	Liabilities increase by SAR 5,000 (Unearned Revenue).
•	Equation: Assets = Liabilities + Owner's Equity.

Point 4)
Date	Description	P/R	Debit	Credit
July 16	Utilities Expense		4,000 SAR	
	Cash 			4,000 SAR
Effect on Accounting Equation:
•	Assets decrease by SAR 4,000 (Cash).
•	Owner's Equity decreases by SAR 4,000 (Expenses reduce equity).
•	Equation: Assets = Liabilities + Owner's Equity.

Point 5)
Date	Description	P/R	Debit	Credit
July 21	Accounts Payable		15,000 SAR	
	Cash 			15,000 SAR
Effect on Accounting Equation:
•	Liabilities decrease by SAR 15,000 (Accounts Payable).
•	Assets decrease by SAR 15,000 (Cash).
•	Equation: Assets = Liabilities + Owner's Equity.

Point 6)
Date	Description	P/R	Debit	Credit
July 28	Accounts Receivable		6,000 SAR	
	Service Revenue 			6,000 SAR
Effect on Accounting Equation:
•	Assets increase by SAR 6,000 (Accounts Receivable).
•	Owner's Equity increases by SAR 6,000 (Revenue increases equity).
•	Equation: Assets = Liabilities + Owner's Equity.


Question 2:
	The accounting cycle is a systematic series of steps that businesses follow to record and report financial transactions over an accounting period. It begins with analyzing transactions, where each financial event is examined to determine its impact on the financial statements (Ahmed, 2019). Next, transactions are journalized in the general journal using double-entry accounting, ensuring that debits equal credits. These journal entries are then posted to the ledger accounts, organizing the financial data by account. Once posting is complete, an unadjusted trial balance is prepared to test the equality of debits and credits (Abdulrahaman, 2012). Adjustments are necessary to account for accruals and deferrals; thus, adjusting entries are made for items like accrued expenses, prepaid expenses, and depreciation. After adjustments, an adjusted trial balance is prepared to verify the accuracy of the accounts. The adjusted trial balance is then used to prepare financial statements, including the income statement, statement of retained earnings, and balance sheet, which provide insights into the company's financial performance and position (Daniel, 2020). Subsequently, closing entries are made to transfer the balances of temporary accounts (revenues, expenses, and dividends) to permanent accounts, resetting them for the next accounting period. Finally, a post-closing trial balance is prepared to ensure that all temporary accounts have zero balances and that the ledger is ready for the next cycle.

Question 3:
Part 1) 
ABC Consulting
Income Statement
For the Year Ended Dec 31, 2023
Revenues	SAR
Service Revenue 	60,000
Total Revenues 	60,000
Expenses	
Salaries Expenses	25,000
Rent Expenses	10,000
Depreciation Expense	5,000
Supplies Expense	3,000
Interest Expense	2,000
Total Expenses	45,000
Net Income 	15,000

Net Income = Total Revenue – Total Expenses
Net Income = 60,000 – 45,000
Net Income = 15,000 SAR

Part 2) 
ABC Consulting
Statement of Retained Earnings
For the Year Ended Dec 31, 2023
Description	SAR
Beginning Retained Earnings  	0
ADD: Net Income 	15,000
LESS: Dividends	(5,000)
Ending Retained Earnings	10,000

Ending Retained Earnings = Net Income – Dividends
Ending Retained Earnings = 15,000 – 5,000
Ending Retained Earnings = 10,000

Part 3) 
ABC Consulting
Balance Sheet
As at Dec 31, 2023
Assets	SAR
Current Assets	
Cash	10,000
Accounts Receivable	15,000
Supplies	5,000
Total Current Assets 	30,000 
Non-Current Assets	
Equipment	50,000
LESS:  Accumulated Depreciation	(10,000)
Net Equipment	40,000
Total Assets	70,000
Liabilities and Equity	
Liabilities	
Accounts Payable	8,000
Unearned Revenue	12,000
Total Liabilities 	20,000 
Equity	
Common Stock	40,000
Retained Earnings	10,000
Total Equity	50,000
Total Liabilities and Equity	70,000