ACCT 101 Assignment 2

ACCT 101

ASSIGNMENT 4

Last due date for submission 13 December 2017

The assignment worth  10 marks which is about 3.75 of the total marks

Student name:

Instructions:  

· The answer must be in English.

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

· Please READ the instructions carefully and FOLLOW them. Answer the ALL questions.

· Do NOT write the questions in the answer papers JUST write the question number.

· Do NOT  put images, you must TYPE answers in the MS document .

· Font should be Times New Roman with 14 points.

· It is an INDIVIDUAL task,  NOT a group task.

· 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.

The assignment worth  10 marks which is about 3.75 of the total marks.

Q1. Khaled Co is in Export business operating from Jeddah for the last 10 years successfully. From the following summary of Cash Account of Khaled, prepare Cash Flow Statement for the year ended 31st March 2017 in accordance with using the direct method. The company does not have any cash equivalents. (4 Points)

Summary (Cash Account) 31-3-2017

Particulars	Amount	Particulars	Amount
Bal 1.4.2016	50	Payments to Suppliers	2000
Equity Shares	300	Purchase of Fixed Asset	200
Receipt from Customers	2800	Overhead Expenses	200
Sale of Fixed Assets	100	Wages & Salaries	100
		Taxation	250
		Dividends	50
		Repayment of long term Loans	300
		Balance c/d	150
	3250		3250

Answer.

Q2. Explain the concept of Equity Share Capital and its Types? (3 Points)

ANSWER.

Q3. A manufacturing corporation listed in capital market was trying to create demand on its share to keep share prices at desired level and to prevent share prices from going down, the corporate decided to purchase treasury stock from open market.( 3 marks)

So, you are required to explain what is meant by treasury stock and journalize the following transactions:

Q3. define Treasury stock and journalize the following transactions:

1- On May 8, Whitt, Inc. purchased 2,000 of its own shares of stock in the open market for $8,000

2- On June 30, Whitt sold 100 shares of its treasury stock for $4 per share.

3- On July 19, Whitt, Inc. sold an additional 500 shares of its treasury stock for $8 per share.

4- On August 27, Whitt sold an additional 400 shares of its treasury stock for $1.50 per share.

Answer:

3