ACCT 101 SEU ABC Consulting Questions

College of Administration and Finance SciencesAssignment (1)
Deadline: Saturday 29/04/2023 @ 23:59
Course Name: Principles of Accounting
Student’s Name:
Course Code: ACCT101
Student’s ID Number:
Semester: Third Term 22/23
CRN:
Academic Year: 1444 H
For Instructor’s Use only
Instructor’s Name: Rabab Farrash
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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College of Administration and Finance Sciences
Assignment Question(s):
(Marks 15)
Question 1:
(5 Marks)
Sarah owns a boutique that sells women’s clothing and accessories. She keeps track of her business
transactions using a journal.
1. On March 1, Sarah invested SAR 10,000 cash in her business to start operations. Prepare the
journal entry.
2. On March 5, Sarah purchased inventory for SAR 5,000 on credit from a supplier. Prepare the
journal entry.
3. On March 10, Sarah sold SAR 3,000 worth of inventory for cash. Prepare the journal entry.
4. On March 15, Sarah paid SAR 1,000 cash for rent for the month. Prepare the journal entry.
5. On March 20, Sarah purchased office supplies for SAR 200 cash. Prepare the journal entry.
6. On March 25, Sarah received a bill for SAR 800 for advertising expenses incurred during the
month. Prepare the journal entry.
7. On March 31, Sarah paid SAR 4,000 cash to the supplier for the inventory purchased on
credit earlier in the month. Prepare the journal entry.
Instructions: Prepare the journal entry in SAR currency for each of the above transactions.
Question 2:
(5 Marks)
Omar owns a catering service company that provides food and beverage services for events such as
weddings and corporate events. He uses the accrual basis of accounting to record his company’s
financial transactions. Here are some of the transactions that occurred during the year:
1. On January 1, Omar signs a contract with a client to provide catering services for their wedding
on July 1. The total contract amount is SAR 25,000. When should Omar recognize the revenue
for this transaction under the accrual basis?
2. On July 1, Omar provides catering services to the client from the January 1 contract. The client
pays the full amount of SAR 25,000 on the day of the event. When should Omar recognize the
revenue for this transaction under the accrual basis?
3. On October 1, Omar provides catering services to a corporate client and invoices them for SAR
12,000. The payment is not received until November 15. When should Omar recognize the revenue
for this transaction under the accrual basis?
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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
company also rents out a portion of its office space to other businesses. As the accountant for ABC
Consulting, you are tasked with preparing the company’s income statement for the year 2022 based
on the following information taken from the trial balance:
• Consulting revenue: SAR70,000
• Rental revenue: SAR30,000
• Supplies expense: SAR5,000
• Rent expense: SAR20,000
• Wages expense: SAR30,000
Your task is to prepare the income statement for ABC Consulting in 2022 based on the
information provided above.
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