ACCT 201 ASSIGNMENT 1 Last due date for submission 14 th October 2017 You are required to work in this assignment individually. Any suspicious activities or cheating will result zero grade in this assignment. Q1.The accounting standards are set by specific Organizations depends on the country location and regulations. You are asked to answer the following questions : a. What are the developing US Financial Accounting Standards Organizations with each organization responsibilities? Please write one paragraph. (1.5 marks) b. What are the processes of setting a new accounting standard in the USA? Please write one paragraph. (1.5 marks) Q2. Prepare general journal entries on December 31 to record the following unrelated year-end adjustments. (6 marks) a. Estimated depreciation on office equipment for the year,SAR2,000 b. The Prepaid Insurance account has aSAR2,500 debit balance before adjustment. An examination of insurance policies showsSAR350 of insurance expired c. The Prepaid Insurance account has aSAR1,400 debit balance before adjustment. An examination of insurance policies showsSAR400 of unexpired insurance d. The company has three office employees who each earnSAR200 per day for a five-day workweek that ends on Friday. The employees were paid on Friday, December 26 and have worked full days on Monday, Tuesday and Wednesday, December 29, 30 and 31 e. On November 1, the company received 6 months’ rent in advance from a tenant whose rent isSAR600 per month. TheSAR3,600 was credited to the Unearned Rent account f. The company collects rent monthly from its tenants. One tenant whose rent is SAR650 per month has not paid his rent for December Q3. The following trial balance was taken from the books of Fisk Corporation on December 31, 2010. Account Debit Credit Cash $ 12,000 Accounts Receivable 40,000 Note Receivable 7,000 Allowance for Doubtful Accounts $ 1,800 Merchandise Inventory 44,000 Prepaid Insurance 4,800 Furniture and Equipment 125,000 Accumulated Depreciation–F. & E. 15,000 Accounts Payable 10,800 Share Capital–Ordinary 44,000 Retained Earnings 55,000 Sales 280,000 Cost of Goods Sold 111,000 Salaries Expense 50,000 Rent Expense 12,800 Totals $406,600 $406,600 At year end, the following items have not yet been recorded. a. Insurance expired during the year, $2,000. b. Estimated bad debts, 1% of gross sales. c. Depreciation on furniture and equipment, 10% per year. d. Interest at 6% is receivable on the note for one full year. *e. Rent paid in advance at December 31, $5,400 (originally charged to expense). f. Accrued salaries at December 31, $5,800. Instructions (a) Prepare the necessary adjusting entries. (3 marks) (b) Prepare the necessary closing entries.(3 marks )