Assignment (2) Principle of Accounting

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College of Administration and Finance Sciences

Assignment (2)

Deadline: Saturday 6/11/2021 @ 23:59

Course Name: Principles of Accounting

Student’s Name:

Course Code: ACCT101

Student’s ID Number:

Semester: 1st

CRN:

Academic Year: 1443 H

For Instructor’s Use only

Instructor’s Name:

Students’ Grade: /5

Level of Marks: High/Middle/Low

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. A company that uses a perpetual inventory system made the following cash purchases and sales. There was no beginning inventory.(2 marks)

January 1:

Purchased 100 units at SAR10 per unit

February 5:

Purchased 60 units at SAR 12 per unit

March 16:

Sold 40 Units for SAR 16 per unit

 

1. Explain the four inventory valuation methods.

2. Prepare general journal entries to record the March 16 sale using the

I. FIFO inventory valuation method.

II. LIFO inventory valuation method.

Q2. The office manager of ABC company has the authority to the whole financial operations. He authorizes activities, controls the company’s expenses, records the company’s transactions, and rarely takes vacation.

The owners of the company are happy with his work since the company is making a profit. You are giving the opportunity to educate the owners about the risk of not implementing internal control. What would be your advice? (2 marks)

Q3. At the end of the month, XYZ company’s bank statement is different from the cash book balance. How would the company do the bank reconciliation? (1mark)