ACCT 490 SEU Accounting Treatment for Contingent Liabilities Questions

‫كلية العلوم الادارية والمالية‬
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Assignment 2
Deadline 03/08/2023 at 23:59 pm
Course Name: Principles 0f Accounting
Student’s Name:
Course Code: ACCT 490
Student’s ID Number:
Summer Semester
CRN:
Academic Year: 1444 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained /Out of 25
Level of Marks: High-Middle-Low
marks
Notes:
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The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
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Assignments submitted through email will not be accepted.
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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.
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Students must mention question number clearly in their answer.
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Late submission will NOT be accepted.
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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.
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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).
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Submissions without this cover page will NOT be accepted.
1
‫كلية العلوم الادارية والمالية‬
Assignment Question(S):
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(Total 25 Marks- -5 Questions Each Carries 5 Marks)
In June 30, 2023, ABC Company has the following information (Amounts in Saudi Riyal)
Bank statement indicated a balance of 100,000
The cash general ledger account on that date shows a balance of 120,000
The ABC’s accountant provided Additional information necessary for preparing the ABC’s
reconciliation statement:
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A 10,000 check sent to the bank for deposit but has not yet reached the bank at the
statement date.
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The bank returned a customer’s NSF check for 26,000 received as payment on account
receivable.
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A 500 deposit by Z Company was erroneously credited to ABC account by the bank.
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The bank statement showed 500 interest earned during June.
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Outstanding checks totalled 15,000.
Required:
a. Prepare a June 30 bank reconciliation statement for ABC Company.
b. Prepare adjusting entries
Answer:
2
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Q2. On July 31, ABC Company discovered that it cannot collect SAR 5,000 from Z a credit
customer.
Required: pass journal entries to record bad debt expense using both Direct Write-Off Method
and Allowance Method.
Answer:
3
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Q3. On January 1, 2022, equipment was purchased for SAR 1000,000 cash. The equipment useful
life is
10 years and has an estimated salvage value of SAR 50,000,000.
Required:
a. Compute the annual depreciation expense for year 2022 using straight line method and
Declining Balance Method.
b. Pass journal entries to record the annual depreciation using straight line method and
Declining Balance Method.
Answer
4
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Q4. On July 1, 2022, an airline company received an amount of SAR 100,000 for international
flights that will take off on December 30, 2022.
Required:
a. Prepare journal entries On July 1, 2022
b. Prepare journal entries on December 30, 2022 assuming that the airline provided the
service to customers.
Answer:
5
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Q5. Define and Discuss the Accounting Treatment for Contingent Liabilities
Answer:
6