ACCT

PRINCIPLES OF ACCOUNTING

ACCT 101

Last Date of Submission: 17/11/2018

Name of the Student		Student ID
CRN		Student Grade
Assignment	3	Marks	/10
Course Title	Principles of Accounting	Code	ACCT 101
Uploading	End week 10	Submission	End week 11
Date	Mon 12/11/2018	Dates	Sat 17/11/2018

Instructions:

· The answer must be in English .

· Students must include your details (Name, Student ID, CRN, Date of submission)

· Answer the ALL questions.

· Do  NOT  write the questions in the answer papers  JUST  write the  question number .

· Assignments should be submitted in MS Word format

· Font should be Times New Roman with 14 points .

· You are required to work in this assignment  individually .

· You should submit the assignment via the  Blackboard .

· Students who submit assignments after deadline, will get ZERO .

· If you engaged in plagiarism, you will get ZERO marks in the assignment or course.

1- On July 9, 2018, Omar Co. purchased a machine for 260,000 SA from Saudi Machine Company (SMC). Omar gave SMC 7% note due in 120 days in payment for the machine. (5 Points)

a. What is the maturity date of the note?

b. How much interest will Omar pay to SMC on this note?

c. Pass the Journal entry for Notes Receivable transaction.

d. On October 16, 2018, Omar informs us that the company is unable to pay the note or interest?

e. What adjusting entry is required on December 2018?

2- On October 31, 2017, Aziz Company sells a truck that originally cost 140,000 SA for 95,000 SA cash. The truck was placed in service on January 1, 2012. It was depreciated using the straight-line method with an estimated salvage value of 28,000 and a useful life of 10 years. Record all the transactions? (2.5 points)

3- The trial balance before adjustment of XYZ Company reports the following balances: (2.5 points)

Dr. Cr.

Accounts receivable $100,000

Allowance for doubtful accounts $ 2,500

Sales (all on credit) 750,000

Sales returns and allowances 40,000

Instructions

Pass the journal entries for estimated bad debts assuming that doubtful debts accounts are estimated to be

(1) 6% of gross accounts receivable and

(2) 1% of net sales.