ACCT 321 SEU Recording Capital Asset Acquisitions Questions

College of Administration and Finance SciencesAssignment (2)
Deadline: Saturday 11/11/2023 @ 23:59
Course Name: Government and Non-Profit
Student’s Name:
Accounting
Course Code: ACCT 321
Student’s ID Number:
Semester: First
CRN:
Academic Year: 1445 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
/15
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
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The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
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Assignments submitted through email will not be accepted.
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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.
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Students must mention question number clearly in their answer.
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Late submission will NOT be accepted.
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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.
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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.
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Submissions without this cover page will NOT be accepted.
College of Administration and Finance Sciences
Assignment Question(s):
(Marks 15)
(5 Marks)
Prepare entries to record the following transactions related to acquisition of capital assets
by a county. The county does not use encumbrance accounting.
a.
The county issues general obligation bonds in the amount of SAR 900,000,
receiving cash for the full face amount of the bonds. The cash will be used
to buy capital assets.
b.
The county buys a prefabricated building for SAR 750,000, using part of
the bond proceeds. The building is delivered and the invoice for the
building is approved.
c. The invoice approved in b. is paid.
d.
The General Fund transfers cash of SAR 55,000 to another fund in
anticipation of the payment of the first installment of interest (SAR 30,000)
and principal (SAR 25,000) on the debt.
e.
The first installment of debt service on bonds issued in (a) becomes due
and payable.
f.
Debt service on the bonds issued in a. is paid.
College of Administration and Finance Sciences
Q2. Following information are related with Internal Service Fund of City of Jeddah. You are
required to prepare a Statement of Cash Flows for the year ended December 31, 2018.
(5 Marks)
Amount ($)
Operating income
68,400
Increase in Inventories
27,200
Interest received
800
Acquisition of Capital Assets
2,800
Payment to Suppliers
32,000
Depreciation expense
29,600
Payments for Rent
21,200
Increase in Accounts Payable
54,400
Receipts from Customers
378,400
Payment to Employees
200,000
Cash balance at the beginning of the year
584,800
College of Administration and Finance Sciences
Q3. The following transactions are related with a Township Debt Service Fund. Prepare journal
entries to record the transactions in the Debt Service Fund.
(5 Marks)
a. The Township levies a special property tax amounting to $1,750,000 to pay debt
service on its long-term general obligation debt. The tax must be accounted for in
the Debt Service Fund.
b. All the property taxes levied for debt service purposes are collected.
c. The Township invests $525,000 in a six-month certificate of deposit.
d. Debt service (interest of $350,000 and principal of $700,000) becomes due and
payable.
e. The debt service liabilities are paid.
f The certificate of deposit in c. matures and the Township receives a total of $535,500,
which includes $10,500 of interest.