ACCT201 SEU Financial Accounting Worksheet

College of Administrative and Financial Sciences
Assignment 2
Deadline: (end of week 10) 09/04/ 2022 @ 23:59
Course Name: Financial Accounting
Course Code: ACCT 201
Semester: 2
Academic Year: 2021- 22
For Instructor’s Use only
Student’s Name:
Student’s ID Number:
CRN:
Instructor’s Name: Habiba Moabber
Students’ Grade: …… /10.
Level of Marks: High/Middle/Low
nstructions – 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.
College of Administrative and Financial Sciences
Assignment Question(s): Total Marks 10 Chapter 7 to 10
Q1. Discuss with your own examples the two methods of accounting for account receivables with
cash discounts and the two methods for estimating bad debts. (2 Marks)
(Note: Numerical Examples must include Journal entry)
Answer
Q2. X Company has the following receivables classified into individually significant and all
other receivables.
Individually significant
P Company
Q Company
R Company
S Company
All other receivables
Total receivables.
$ 65,000
95,000
75,000
35,000
270,000
425,000
695,000
X company determines that P’s receivable is impaired by $20,000, and S’s receivable is totally
impaired. Both Q’s and R’s receivables are not considered impaired. X company also determines
that a composite rate of 2% is appropriate to measure impairment on all other receivables.
Required: Calculate the total impairment on accounts Receivable (1 Mark)
College of Administrative and Financial Sciences
Answer:
Q3. Rex Company’s record of transactions for the month of September was as follows.
Purchase
Quantity
Unit Price
Date
(Balance on
$5.00
Sep 5
hand) 100
Sep 4
400
5.10
Sep 12
Sep 11
300
5.30
Sep 27
Sep 18
200
5.35
Sep 28
Sep 26
600
5.60
Sep 30
200
5.80
Total
1,800
Total units (ending inventory) 350
Instructions: (2 Marks)
Date
Sep 1
Sales
Units
300
200
800
150
1,450
Compute the ending inventory at September 30 on each of the following on periodic bases.
1. FIFO
2. LIFO
3. WA
Answer:
College of Administrative and Financial Sciences
Q4. Explain the concept of LCNRV and its applicability to Agricultural Inventory and
Commodity Broker-Traders (1 Mark)
Answer:
Q5. Give numerical examples for Gross profit and retail Methods of Estimating ending Inventory.
(2 Marks)
Q6. ABC Corporation borrowed SAR 150,000 at 10% interest from NCB Bank on Jan. 1, 2020,
for specific purposes of constructing special-purpose equipment to be used in its operations.
Construction on the equipment began on Jan. 1, 2020, and other general debt existing on Jan. 1,
2020 was:
SAR 200,000, 12%, 10-year bonds payable
SAR 100,000, 11%, 5-year note payable
The weighted-average accumulated expenditures was SAR 250,000.
Compute the Actual and Avoidable Interest and Pass journal entry for the appropriate interest to
be capitalized. (2 Marks)
Answer:

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