assignment
nova_alj
ACCT201-Assignment1-Studentscopy2.docx
College of Administrative and Financial Sciences
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
• Submissions without this cover page will NOT be accepted.
Assignment Question(s): (Marks. 10)
Q1. From the information given, prepare a statement of retained earnings. (2 marks)
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
Q2. Explain the pronouncements issued by IASB. (3 marks)
Q3. Prepare general journal entries on December 31 to record the following unrelated year-end adjustments. (2 marks) a. Estimated depreciation on office equipment for the year, SAR 2,000 b. The Prepaid Insurance account has a SAR 2,500 debit balance before adjustment. An examination of insurance policies shows SAR 350 of insurance expired c. The Prepaid Insurance account has a SAR 1,400 debit balance before adjustment. An examination of insurance policies shows SAR 400 of unexpired insurance d. The company has three office employees who each earn SAR200 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.
Q4. The adjusted trial balance of CHO company appears below. Using the information from the adjusted trial balance, you are to prepare for the month ending December 31, a statement of financial position. (3 marks)
CHO company
Adjusted Trial Balance
December 31, 2018
Debit Credit
Cash SAR 4,400
Accounts Receivable 2,200
Office Supplies 1,800
Office Equipment 15,000
Accumulated Depreciation—Office Equipment SAR 4,000
Accounts Payable 3,800
Unearned Revenue 5,000
Share Capital–Ordinary 10,000
Retained Earnings 4,400
Dividends 2,500
Service Revenue 3,700
Office Supplies Expense 600
Depreciation Expense 2,500
Rent Expense 1,900 ______
30,900 30,900
Answer:
