Explain the uses and limitations of a statement of financial position. Explain the pronouncements issued by IASB. From the information given, prepare a statement of retained earnings.

DISCUSSION ESSAY

Q1– Explain the uses and limitations of a statement of financial position (3 Marks).

Q2- Explain the pronouncements issued by IASB. (3Marks).

Q3. From the information given, prepare a statement of retained earnings. . (4Marks).

ABC corporation had an initial investment of SAR50,000 cash and other information was as follows:

Accounts payable	SAR12,000	Office furnishings	SAR40,000
Accounts receivable	23,000	Dividends	6,000
Cash	17,200	Rent expense	3,600
Fees earned	30,000	Salaries expense	6,200
Notes payable	4,250	Telephone expense	250

 

Q4. From the following information of XYZ Company, prepare a multi-step income statement For the Year Ended December 31, 2021 (5 Marks).

 

Sales                           $137,460

Sales Returns   $2,060

Sales Discounts       $5,190

Cost of Goods Sold $62,990

Freight-Out           $6,150

Advertising Expense   $5,790

Sales Commissions Expense  $3,470

Office Salaries Expense      $18,510

Office Rent Expense   $14,000

Office Supplies Expense     $5,330

Gains on Sale Equipment   $2,430

Loss on Sales of Investments $1,640

Interest Expense     $930