Financial accountiog ( ACCT 201 )

Make sure to avoid plagiarism as much as possible

• 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.

College of Administration and Financial Sciences
Assignment (1)
Deadline: Saturday 7/10/2023 @ 23:59
Course Name: Financial Accounting
Student’s Name:
Course Code: ACCT201
Student’s ID Number:
Semester: First Term 23/24
CRN: 10666
Academic Year: 1445 H
For Instructor’s Use only
Instructor’s Name: Dr. Fathimunisa Hanfy
Students’ Grade:
/15
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.
College of Administration and Financial Sciences
Assignment Question(s):
Question 1:
(Marks: 15)
(4 Marks)
List and discuss the characteristics of the International Accounting Standards Board
(IASB) that reinforced the importance of an open, transparent and independent process.
Answer to Q1:
Question 2:
(4 Marks)
Khaled Corporation’s capital structure consists of 50,000 ordinary shares. At December 31,
2022 an analysis of the accounts and discussions with company officials revealed the following
information:
Sales
Purchase discounts
Purchases
Loss on discontinued operations (net of tax)
Selling expenses
Cash
Accounts receivable
Share capital
Accumulated depreciation
Dividend revenue
Inventory, January 1, 2011
Inventory, December 31, 2011
Unearned service revenue
Accrued interest payable
Land
Patents
Retained earnings, January 1, 2011
Interest expense
SAR1,100,000
18,000
642,000
42,000
128,000
60,000
90,000
200,000
180,000
8,000
152,000
125,000
4,400
1,000
370,000
100,000
290,000
17,000
College of Administration and Financial Sciences
General and administrative expenses
Dividends declared
Allowance for doubtful accounts
Notes payable
Machinery and equipment
Materials and supplies
Accounts payable
150,000
29,000
5,000
200,000
450,000
40,000
60,000
The amount of income taxes applicable to ordinary income was SAR48,600, excluding the tax
effect of the discontinued operations loss, which amounted to SAR18,000.
Instructions
(a) Prepare an income statement. (2 marks)
(b) Prepare a retained earnings statement. (2 marks)
Answer to Q2:
College of Administration and Financial Sciences
Question 3:
(4 Marks)
The following trial balance was taken from the books of ALHANA Company on December
31, 2022.
Account
Cash
Accounts Receivable
Note Receivable
Allowance for Doubtful Accounts
Merchandise Inventory
Prepaid Insurance
Furniture and Equipment
Accumulated Depreciation–F. & E.
Accounts Payable
Share Capital–Ordinary
Retained Earnings
Sales
Cost of Goods Sold
Salaries Expense
Rent Expense
Totals
Debit
SAR 12,000
40,000
7,000
Credit
SAR 1,800
44,000
4,800
125,000
15,000
10,800
44,000
55,000
280,000
111,000
50,000
12,800
SAR406,600
SAR406,600
At year-end, the following items have not yet been recorded.
a.
b.
c.
d.
e.
f.
Insurance expired during the year, SAR2,000.
Estimated bad debts, 1% of gross sales.
Depreciation on furniture and equipment, 10% per year.
Interest at 6% is receivable on the note for one full year.
Rent paid in advance at December 31, SAR5,400 (originally charged to expense).
Accrued salaries at December 31, SAR5,800.
Instructions
(a) Prepare the necessary adjusting entries. (2 marks)
(b) Prepare the necessary closing entries. (2 marks)
Answer to Q3:
College of Administration and Financial Sciences
Question 4:
(3 Marks)
Prepare balance sheet in proper form for Golden Tulip hotel from the following list of
the accounts at November 30 2022:
Accounts receivable
Accounts payable
Building
Common stock
Cash
Notes payable
Office equipment
Retained earnings
Trucks
Answer to Q4:
SAR10,000
18,000
28,000
30,000
8,000
45,000
12,000
?
55,000