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Management Science Department

Yanbu University College (Women’s Campus)

The Royal Commission at Yanbu

Kingdom of Saudi Arabia

Academic Year 2020-21

Semester 202

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PROJECT
Course Name and Code:	FINANCIAL ACCOUNTING ACCT 110	Section:	All
Due Date:	Check schoology	Submission Date:	Check schoology
Total Marks:	100	Marks Obtained:
Marked By:	RAHAYU ABDULL RAZAK JUNAINI MOHAMMAD MAHA AL MALKI	Signature:

Academic Integrity

Plagiarism

The practice of taking someone else’s work or ideas and passing them off as one’s own. An example of plagiarism is to use creative works of another, without appropriate acknowledgment of the author or source.

Collusion

Secret or illegal cooperation in order to deceive others. Collusion is the presentation of an assignment as one’s own which is in fact the result in whole or in part of unauthorized collaboration with other person(s). Collusion involves the cooperation of two or more individuals in plagiarism or other forms of academic misconduct.

Both plagiarism and collusion constitute cheating. Disciplinary action will be taken against students who engage in plagiarism and collusion.

Student Declaration

I have read and understood the statement of academic integrity written above. I certify that the attached work is entirely my own except where work quoted is duly acknowledged in the text; that I have not worked with another person or persons except where specifically permitted by the teacher, and that this work has not been submitted for assessment by myself or any other person in any other time. I have retained a copy of my work.

Student ID	Student Name	Signature
4110179	Hala Albakri
4110070	Renad Alghamdi
4110012	Sarah Alrefaei
4110139	Khadeejh Bakhashwain
4110027	Thikra Alhazmi

1. PART 1: SECTION A. Write a business report which include

a) Introduction about your company. Identify the owner and the type of business.

Flight World, an airline business, provides transportation for passengers back and forth to Jeddah, Dammam and Riyadh. It is a corporation founded by Hala Albakri, Renad Alghamdi, Sarah Alrefeai, Khadeeja Bakhshwain and Thikra Alhazmi. It is a small company with two aircrafts and limited capabilities.

b) Create company logo and explain why you choose the logo?

The logo visually represents the brand name “flight World” in English and Arabic with little bit tough of art- a small world map and half side of wings. It’ll perfectly connect people with the vision of company that is to be wings of ordinary people and make a way to their destinies.

c) In table form, list down how much investment each shareholder will invest?

Shareholders	Owner’s Capital
Hala Albakri	3 million $
Renad Alghamdi	3 million $
Sarah Alrefeai	2 million $
Khadeeja Bakhshwain	2.5 million $
Thikra Alhazmi	2.5 million $
Investor (Bank Albilad shares worth)	2 million $
Total	15 million $

d) In table form, list the type of service and what prices will you charge for your service(s)?

Service	Price
Dammam to Riyadh	$ 70
Riyadh to Dammam	$ 60
Jeddah to Riyadh	$ 70
Riyadh to Jeddah	$ 70

Service	Price ($)
Economy	70
Premium Economy	78
Business	80
First	95

e) Where will you place your store? How much rent will you pay for the store? If you do not want to rent, you can buy the building.

Flight World will be inaugurated at Jeddah as the most of demand is in there. It is located at privately owned place worth 4 million $.

f) Decide how to inform customers about your new business.

The following information represents the options you may select regarding the advertising for your store. You must determine the amount that you will spend on advertising and the types of advertising.

1: Airing short advertisements on TV with influencers like Sarah Dundarawy or some others ($60,000) per year.

2: Advertising on social platforms ($50,000) per year.

3: Advertisements via banners and Digital screen on the streets ($20,000) per year.

g) In table form, list how much will you pay salary per month for each of your employees?

You must also decide on the manager, worker and any other people working in your company

Employees	Salary per month
2 Pilot	$30,000each
2 Manager	$20,000each
2 Receptionist	$10,000each
3 Checking people in charge	$10,000each
7 Cleaners	$8,000each
7 porter	$8,000each
8 Security Guards	$8,000each
Total	$326,000

h) Other Information for planning your operation.

You will need this information to make a reasonable plan.

Assets	Financing	Price ($)
2 Airplanes	Borrowed: 5 year, 3% of cost and 3-month lease in advance payment, 5 installments in total.	101 million each
Building	Owned	4 million
Furniture	Owned	100,000
Computers and electrical machines	Owned & Borrow on 3%interest from supplier	1 million
Supplies	Owned	50,000

Company will borrow loan of worth 80 million from bank Albilad on 7% interest for 5 years.

DIVIDEND: How much of dividend to give to each investor? When to give? (ONLY 3 MONTHS DIVIDEDN, THE AMOUNT SHOULD NOT BE BIG- PUT IN AMOUNT NOT PERCENTAGE)

There will be no dividend during the first year as per the agreements with shareholders.

1. PART 1: SECTION B: Prepare necessary transactions for three months.

From your part 1, write necessary transactions for three months (January, February, March)

Each month should have at least 10 transactions . (Use the table form like this)

January:

Date	Transactions
01 Jan 2020	Company issued shares worth $ 15 million to shareholders to start operations.
02 Jan 2020	Purchased Building worth $4 million.
11 Jan 2020	Borrowed $80 million for 5 years at 7%.
12 Jan 2020	Hired employees for service to perform in the company.
13 Jan 2020	Paid $15,000 for pilot training.
15 Jan 2020	Bought and paid in cash furniture worth $100,000
15 Jan 2020	Bought supplies worth $50,000.
16 Jan 2020	Purchased two airlines worth $101 million, paid $15.857 million in advance and sign a note payable for the remainder
30 Jan 2020	Paid employees worth $326,000 in cash.
31 Jan 2020	Received cash payment of $70 in full from the customer.

February:

1 Feb 2020	Purchased computers worth $17,000.
1 Feb 2020	Paid electricity bill worth $30,000
14 Feb 2020	Earned $50,000 service revenue from service performed.
15 Feb 2020	Received prepaid cash worth $30,000 from customer for advance booking.
16 Feb 2020	Paid advertising expenses worth $15,000 for TV ad.
16 Feb 2020	Paid advance $10,000 as a salary to receptionist.
28 Feb 2020	Purchased supplies on account for $500, payment due within three months.
28 Feb 2020	Paid half payment of supplies bought on 15 January.
28 Feb 2020	Performed the services for the amount received on 15 Feb.
28 Feb 2020	Signed contract for electric machine.

March:

1 March 2020	Paid bill worth $30,000 for February month.
1 March 2020	Received and paid $50,000 in cash for electric machine.
1 March 2020	Paid $5000 for utility expenses.
11 March 2020	Payment received in advance worth $50,000 for tickets on 17 march.
14 March 2020	Purchased supplies on cash worth $15,000.
15 March 2020	Paid $20,000 for computer software for bookkeeping.
17 March 2020	Service performed for $50,000 received on 11 march.
21 March 2020	Paid $10,000 for inventories for pilot.
25 March 2020	Paid salary expense to all employees.
31 March 2020	Distributed $100 cash in dividends to each stockholder.