SEU Principles of Accounting Worksheet

Assignment 3Deadline: 11/4/2020 @ 23:59
Course Name: Principles of Accounting
Student’s Name:
Course Code: ACCT101
Student’s ID Number:
Semester: II
CRN:
Academic Year: 1440/1441 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks
Obtained/Out of 10
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 answered 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):
(10 Marks)
Q1Abdulaziz Co. purchased a machine in 2013 for 50,000 that has a useful life of 5 years
with a salvage value of 5,000.
Calculate the depreciation expense, accumulated depreciation, book value throughout
its useful life using:
1- Straight-line Method.
2- Units of Production Method if the machine produces 100,000 units.
Here is a table of units produced each year:
First
Second
Third
Fourth
Fifth
23,000
25,000
–
30,000
22,000
3- Double Declining Balance Method (2.5 Marks).
Q2On June 1, 2019, ABC Company signed a $25,000, 120-day, 6% note payable to
cover a past due account payable.
a. What is the total amount of interest to be paid on this note?
b. Prepare ABC Company’s general journal entry to record the issuance of the note
payable
c. Prepare ABC Company’s general journal entry to record the payment of the note on
September 29, 2019 (2.5 marks).
Q3.
What are the characteristics of corporations (2.5 mark).
Q4.
On July 31, a company declared a cash dividend of $0.25 per common share to the
shareholders of record on August 15. The cash dividend will be paid on August 25.
This company has 500,000 shares authorized and 100,000 shares outstanding. Prepare
the journal entries required on July 31, August 15 and August 25 (2.5 Marks).