College of Administration and Finance Sciences

Assignment (1)
Deadline: Saturday 30/07/2022 @ 23:59

Course Name: Principles of Accounting Student’s Name:

Course Code: ACCT490 Student’s ID Number:
Semester: Summer CRN:
Academic Year: 2021-2022

For Instructor’s Use only

Instructor’s Name:
Students’ Grade: /30 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.

1
 College of Administration and Finance Sciences

Assignment Question(s): (Marks 30)

Q1. Choose two accounting principles and two accounting assumptions and explain them in your
word. (4 Marks)

Answer:

Q2. Explain the concept of double entry system and its relationship with accounting
equation. (3
Marks)

Answer:

:Q3. Al-Ahmad Accounting Services completed these transactions in July

a. Purchased office supplies on account, SAR 450
b. Completed work for a client on credit, SAR 1,500
c. Paid cash for the office supplies purchased in (a)
d. Completed work for a client and received SAR 800 cash
.e. Received SAR 1,500 cash for the work described in (b)
f. Received SAR 3,000 in advance from a client for accounting services to be performed in
.September
Prepare journal entries to record the above transactions. Explanations are not necessary.  
.(7 Marks)

:Answer

2
 College of Administration and Finance Sciences

Q4. Explain the purpose and the importance of the income statement, and prepare the income
statement for ABC company based on the following information taken from the trial balance in
2021 (4 Marks)
Consulting revenue SAR100,000
Rental revenue 40,000
Supplies expense 10,000
Rent expense 60,000
Wages expense 30,000

Answer:

Q5. On October 1, Saad Co. sold merchandise in the amount of SAR 5,800 to Neom Co., with credit
terms of 2/10, n/30. The cost of the items sold is SAR 4,000. Saad Co. uses the perpetual inventory
system. On October 4, Neom Co. returns some of the merchandise. The selling price of the
merchandise is SAR 1,500, and the cost of the merchandise returned is SAR 1,050.

Record the entry or entries that Saad Co. must make on October 4th. (4 Marks)

Answer:

3
 College of Administration and Finance Sciences

Q6.

a. Explain in your own words four costing methods of inventory with a numerical example for

each (4 Marks)

b. A company that uses a perpetual inventory system made the following cash purchases and sales.
There was no beginning inventory.

January 1: Purchased 550 units at SAR 55 per unit

February 5: Purchased 350 units at SAR 65 per unit

March 16: Sold 250 Units for SAR 85 per unit

Prepare general journal entries to record the March 16 sale using the FIFO inventory valuation
method and the LIFO inventory valuation method. (4 Marks)

 Answer: