Accounting

Assignment (1)

Deadline: Saturday 16/10/2021 @ 23:59

For Instructor’s Use only

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 answers 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 5)

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. (0.5 mark)

b. What are the processes of setting a new accounting standard in the USA? Please write one paragraph. (0.5 mark)

Q2. Prepare general journal entries on December 31 to record the following unrelated year-end adjustments. (1.5 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

e. On November 1, the company received 6 months' rent in advance from a tenant whose rent is SAR 600 per month. The SAR 3,600 was credited to the Unearned Rent account f. The company collects rent monthly from its tenants. One tenant whose rent is SAR 650 per month has not paid his rent for December

Q3. The following trial balance was taken from the books of Eid Corporation on December 31, 2020.

Account Debit Credit

Cash SAR 12,000

Accounts Receivable 40,000

Note Receivable 7,000

Allowance for Doubtful Accounts SAR 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 SAR406,600 SAR406,600

Required:

(a) Prepare the necessary closing entries. (1 mark )

Q4.

Prepare a classified statement of financial position in good form as per IFRS. (1.5 marks)

Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of trading securities are the same

Q.1

A..The Financial Accounting Standards Board (FASB), based in Norwalk, Connecticut, is an independent, private-sector, not-for-profit organisation that establishes financial accounting and reporting standards for public and private companies and not-for-profit organisations that follow Generally Accepted Accounting Principles (GAAP).

The Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission are in charge of enforcing and shaping generally accepted accounting standards (GAAP) (SEC). The SEC is in charge of both establishing and enforcing accounting standards.

The GASB, FASB, and FAF all have the same mission: to develop and improve financial accounting and reporting standards in order to offer meaningful information to investors and other consumers of financial reports, as well as to educate stakeholders on how to best comprehend and use those standards.

Negligent conduct may have occurred if your financial professional fails to observe the GAAS and GAAP principles and standards. ... You must demonstrate that you have experienced financial loss, as well as. You must show that your financial losses were caused by the financial professional's breach of duty or accountability.

Answer B..Based on a staff-prepared study of the issues, the FASB determines whether to add a project to the technical agenda. The Board discusses the numerous reporting concerns that the staff has discovered and assessed at one or more public meetings. The Board publishes an Exposure Draft in order to get feedback from a wide range of stakeholders.

The due process refers to the steps taken by the International Accounting Standards Board when producing IFRS Standards and the IFRS Taxonomy, as well as the steps used by the IFRS Interpretations Committee when working with the Board to ensure that the Standards are applied consistently.

Q.2

E. Unearned rent account 1200

Rent revenue a/c. 1200

given that per month rent is 600

So rent received in advance = 600*6= 3600

F. Rent receivable a/c. 650

Rent revenue a/c. 650

Q.3

Q.4