act101.omer

College of Administration and Finance Sciences
Assignment (1)
Deadline: Saturday 12/10/2024 @ 23:59
Course Name: Principles of Accounting
Student’s Name:
Course Code: ACCT101
Student’s ID Number:
Semester: First Term 24/25
CRN:
Academic Year: 1446 H
For Instructor’s Use only
Instructor’s Name: Dr. Mohammed Arshad Khan
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.
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Assignment Question(s):
(Marks 15)
Question 1:
(5 Marks)
Abdulaziz is the owner of a service company that provides consulting services and charges the clients
for them. He uses a journal to record his business transactions. Below are some of the transactions that
occurred in July 2024. For each transaction, apply the rules of double-entry accounting by preparing
the journal entry in SAR currency and explain the effect on the accounting equation.
1. On July 1, Abdulaziz invested SAR 50,000 cash in his business to start operations.
2. On July 6, the company bought office equipment worth SAR 15,000 on credit from a supplier.
3. On July 10, the company received SAR 5,000 cash in advance from customer for providing
consulting services next month.
4. On July 16, the company paid SAR 4,000 cash for utility bills for the month.
5. On July 21, the company made a cash payment of SAR. 15,000 on the equipment that purchased
on account on July 6th.
6. On July 28, the company performed services worth SAR 6,000 and the bill was sent to the
customer.
Answer
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College of Administration and Finance Sciences
Question 2:
(5 Marks)
What is the accounting cycle? Explain every step starting from analyzing transactions to
preparing post-closing trial balance.
(Marks5)
Answer
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College of Administration and Finance Sciences
Question 3:
(5 Marks)
ABC Consulting is a company that provides consulting services to clients in various industries. The
following are the balances taken from the trial balance:
ABC
Trial Balance
31/12/2023
Account
Debit
(SAR)
Credit
(SAR)
Cash
10,000
–
Accounts Receivable
15,000
–
Supplies
5,000
–
Equipment
50,000
–
Accumulated Depreciation Equipment
–
10,000
Accounts Payable
–
8,000
Unearned Revenue
–
12,000
Common Stock
–
40,000
Dividends
5,000
–
Service Revenue
–
60,000
Salaries Expense
25,000
–
Rent Expense
10,000
–
Depreciation Expense
5,000
–
Supplies Expense
3,000
–
Interest Expense
2,000
–
Total
130,000
130,000
Required:
1.Prepare the income statement for the year ended 31 December 2023.
2.Prepare the statement of retained earnings for the year ended 31 December 2023.
3.Prepare the balance sheet as at 31 December 2023.
Answer
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