Description
College of Administrative and Financial Sciences
Assignment 1
Deadline: (end of week 6) 29 /02/ 2020 @ 23:59
Course Name: Financial accounting
Student’s Name:
Course Code: ACCT 201
Student’s ID Number:
Semester: II
CRN:
Academic Year: 1440/1441 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: …… /5
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):
(Marks. 5)
Q1. Identify the major financial statements and other means of financial reporting. (1 mark)
Q2. Prepare general journal entries on December 31 to record the following unrelated year-end
adjustments. (1 mark)
a. Estimated depreciation on office equipment for the year, SAR 2,000
b. The Prepaid Insurance account has a SAR 2,500 debit balance before adjustment. An examination
of insurance policies shows SAR 350 of insurance expired
c. The Prepaid Insurance account has a SAR 1,400 debit balance before adjustment. An examination
of insurance policies shows SAR 400 of unexpired insurance
d. The company has three office employees who each earn SAR200 per day for a five-day workweek
that ends on Friday. The employees were paid on Friday, December 26 and have worked full days on
Monday, Tuesday and Wednesday, December 29, 30 and 31.
Q3. The following is an income statement for GAMA Company for the year ended December 31,
2019.
GAMA Company
Income Statement
For the Year Ended December 31, 2019
Net sales
Costs and expenses:
Cost of goods sold
Selling, general, and administrative expenses
Other, net
Income before income taxes
Income taxes
Net income
SAR800,000
640,000
70,000
20,000
730,000
70,000
21,000
SAR 49,000
Additional information:
1. “Selling, general, and administrative expenses” included a charge of SAR7,000 for impairment of
intangibles.
2. “Other, net” consisted of interest expense, SAR10,000, and a discontinued operations loss of
SAR10,000 before taxes. If the loss had not occurred, income taxes for 2019 would have been
SAR24,000 instead of SAR21,000.
3. GAMA had 20,000 ordinary shares outstanding during 2019.
Instructions
Prepare a corrected income statement, including the appropriate per share disclosures. (3 marks)
Answers
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