What is the accounting cycle? Explain every step starting from analyzing transactions to preparing post-closing trial balance.

Assignment Question(s):
Q1. On your own words, outline the accounting principles and assumptions and explain each one.
Q2. What is the accounting cycle? Explain every step starting from analyzing transactions to preparing post-closing trial balance.
Q3. Based on the following trial balance for ABC Co, prepare an income statement, statement of retained earnings and a balance sheet. The company made no additional investments in the company during the year.
ABC Co.
Trial Balance
December 31
Cash
SR 6,500

Accounts receivable
475

Supplies
2,500

Equipment
17,000

Accounts payable

SR 745
Common stock

10,000
Retained earnings

11,155
Dividends
36,000

Revenue earned

72,000
Supplies expense
3,425

Rent expense
6,000

Wages expense
22,000

Totals
SR93,900
SR93,900

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