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ACCT 490 Assignment 1

This document provides instructions for Assignment 1 for the Principles of Accounting course. It includes the course details, student details, assignment questions, and instructions for completing the assignment. The assignment requires students to explain key accounting concepts in identifying, recording, and communicating transactions, the double entry system and its relationship to the accounting equation, prepare financial statements from a trial balance, and provide merchandise transaction journal entries. Students must support their answers using course concepts and at least two peer-reviewed sources while avoiding plagiarism.

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Saad Fahad
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47 views

ACCT 490 Assignment 1

This document provides instructions for Assignment 1 for the Principles of Accounting course. It includes the course details, student details, assignment questions, and instructions for completing the assignment. The assignment requires students to explain key accounting concepts in identifying, recording, and communicating transactions, the double entry system and its relationship to the accounting equation, prepare financial statements from a trial balance, and provide merchandise transaction journal entries. Students must support their answers using course concepts and at least two peer-reviewed sources while avoiding plagiarism.

Uploaded by

Saad Fahad
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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College of Administrative and Financial Sciences

Assignment 1
Deadline: 13/06/2020 @ 23:59
Course Name: Principles of Accounting Student’s Name: SAAD ALZAHRANI
Course Code: ACCT490 Student’s ID Number: G200007150
Term: Summer CRN:
Academic Year: 2019/2020 (1440/1441 H)

For Instructor’s Use only


Instructor’s Name:
Students’ Grade: Marks Obtained/Out Level of Marks: High/Middle/Low
of 20

Instructions:

1. This assignment is an individual assignment.


2. All students are encouraged to use their own words.
3. Student must apply Saudi Electronic University academic writing standards
and APA style guidelines.
4. Support your submission with course material concepts, principles, and
theories from the textbook along with at least two scholarly, peer-reviewed
journal articles.
5. A mark of zero will be given for any submission that includes copying from
other resource without referencing it.
6. It is strongly encouraged that you submit your assignment into the safe
assignment Originality Check prior to submitting it to your instructor for
grading.

Assignment Question(s): (20 Marks)


Q1. “Accounting takes in the process of Identifying, Recording and Communicating”. How
would you like to explain the statement? Give support to your answer with examples on
Identifying, Recording and Communicating. (3 activity Marks)

Identifying by selecting evidence of economic or financial events like Pepsi Co.

when they find economic event of the sale of snake chips. (Paul D. Kimmel, 2012)

Recording transactions to provide a permanent history of the business financial

Activities once Pepsi Co. finds economic event, they shall record it to have a data base

of it’s financial activity & it should be systematic measured by its own currency also

classifies and summarizes economic events (Paul D. Kimmel, 2012)

Communicating the recorded information to interested users by use accounting

Reports. After recording Pepsi Co. will convey the financial statement to their users in

organize & standard report accumulating all events in order to make it simple,

meaningful & able to understand it. (Paul D. Kimmel, 2012)

Q2. Explain the concept of double entry system and its relationship with accounting
equation. (2 Marks)

Double entry system is base of bookkeeping every business exchange has two

Way impact with least two records in each side when record it in the book of

bookkeeping diary or record and shows in a single side the benefit supplier and

opposite side shows the beneficiary benefit noticing that each business exchange has an

equivalent and inverse impact in least two distinct records. Summing up the standards

for twofold passage framework dependent on the records type in beneath table:

  Personal account
Receiver Debit  
Giver   Credit

  Real account
comes in Debit  
goes out   Credit

  Nominal accounts
all expenses
Debit  
& losses
all incomes
  Credit
& gains

The accounting condition is seen as the foundation of the double entry system

In accounting structure. The accounting condition shows up on an association's

bookkeeping report whereby the total of all the association's advantages ascends to the

entire of the association's liabilities and financial specialists' worth.

Taking into account this twofold entry structure, the accounting condition

ensures

that the benefit report stays "balanced," and each segment made on the charge side

should have a relating section (or consideration) on the credit side. (kumar, 2014)
Q3. The following is the Trial balance has been extracted from the accounts of Green
Lawn Care, Inc. as on 31st December, 2019 (9 Marks)

Green Lawn Care, Inc.


Trial Balance December 31, 2019—
(Amounts in SAR)
Cash 8,700
Accounts Receivable 20,600
Prepaid Insurance 4,400
Supplies 1,950
Land 45,000
Building 134,500
Equipment 80,100
Accounts Payable 7,500
Unearned Revenue 6,000
Capital Stock 15,300
Retained Earnings (Begin) 54,000
Dividends 8,000
Fees Earned 347,400
Salaries and Wages 70,200
Expense
Utilities Expense 23,200
Advertising Expense 18,000
Repairs Expense 11,500
Miscellaneous Expense 4,050
Totals 430,200 430,200

Use the above information to complete the following financial Statements:

Green Lawn Care, Inc.


Income Statement as on Dec,31 2019--
Revenues:
Fees Earned 347,400
Less Expenses
Salaries and Wages 70,200
Utilities Expense 23,200
Advertising Expense 18,000
Repairs Expense 11,500
Miscellaneous Expense 4,050
126,950
Net Income 220,450

Green Lawn Care, Inc.


Statement of Retained Earning as on Dec,31, 2019--

Retained Earnings (Begin) 54,000


Add Net Income 220,450
Less Dividends (8000)
Retained Earnings (End)
266,450

Green Lawn Care, Inc.


Statement of Balance Sheet as on Dec,31,
2019--
Assets SAR Liabilities & Equity SAR
Cash 8,700 Accounts Payable 7,500
Accounts Receivable 20,600 Unearned Revenue 6,000
Prepaid Insurance 4,400 Capital Stock 15,300
Supplies 1,950 Retained Earnings (Begin) 54,000
Land 45,000 Accounts Payable 7,500
Building 134,500
Equipment 80,100
Total 295,250 295,250
Q4. Imagine yourself to be a Merchandiser and bring out three important merchandise
transaction on purchases and sales in a proper journal format. (6 Marks)

Answer
Purchase Transactions Sale Transactions
Date Description PR Debit Credit Date Description PR Debit Credit
References
kumar, v. (2014). Finanical Accounting Notes. Double Entry System, 5-8.
Paul D. Kimmel, J. J. (2012). Accounting10e Principles. United States of America: John Wiley & Sons, Inc.

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