Description
Assignment Question(s):(Marks 15)
Q1. Abdulaziz Co. purchased a machine in 2013 for SAR 50,000 that has a useful life of 5 years with a salvage value of SAR 5,000.
Calculate the depreciation expense, accumulated depreciation, book value throughout its useful life using:
1- Straight-line Method.
2- Units of Production Method if the machine produces 100,000 units.
Here is a table of units produced each year:
First
Second
Third
Fourth
Fifth
23,000
25,000
–
30,000
22,000
3- Double Declining Balance Method (5 Marks).
Q2- On June 1, 2019, ABC Company signed a SAR 25,000, 120-day, 6% note payable to cover a past due account payable.
a. What is the total amount of interest to be paid on this note?
b. Prepare ABC Company’s general journal entry to record the issuance of the note payable
c. Prepare ABC Company’s general journal entry to record the payment of the note on September 29, 2019 (5 marks).
Q3- Assume that you have a company. The management estimates that 2.5% of sales will be uncollectible.
Give any amount of sales and prepare the journal entry using the percent of sales method (5 marks).
