Principles of Accounting

PRINCIPLES OF ACCOUNTING

ACCT 101

Name of the Student		Student ID
CRN		Student Grade
Assignment	2	Marks	/10
Course Title	Principles of Accounting	Code	ACCT 101
Uploading	End week 5	Submission	End week 6
Date	Sat 09/02/2019	Dates	Sat 16/2/2019

Instructions:

· The answer must be in English .

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

· Answer the ALL questions.

· 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.

Q1.

In this question, you need to provide an amount for each transaction.

1- A merchandising company purchases merchandise inventory on credit, the credit terms are 2/10,n/30.

2- The company pays the amount due within the purchase discount period.

Required:

A. Record the journal entries for both transactions: issuance of the invoice, payment.

B. Prepare the T-Accounts for: Accounts Payable and Merchandise Inventory.

Q2-

On your own words, talk briefly about two of the inventory costing methods, give one example of each method.

Q3.

A- Explain how to calculate the net income for merchandising companies, why is it different than calculating the net income for service companies.

B- Prepare the income Statement for Yazeed merchandising company for December 2018 that has the followings:

Sales: 1,000,000

Sales discount: 20,000

Salaries expenses: 100,000

Advertising expenses: 100,000

Sales returns and allowances: 50,000

Insurance expenses: 10,000

Costs of Goods Sold: 450,000