Saudi Electronic University - ACCT 201

FINANCIAL ACCOUNTING ACCT 201

ASSIGNMENT 2

Q1) Prepare a November 30 balance sheet in proper form for SAAP Delivery Service from the following alphabetical list of the accounts at December 31:

Accounts receivable    $10,000

 Accounts payable        18,000

Building          28,000    

Common stock                30,000

Cash    8,000    

Notes payable   45,000

Office equipment        12,000    

Retained earnings ?

Trucks        55,000

 

 

1. 2. What are the basic components of the conceptual framework?
   3. Differentiate Cash basis vs. accrual basis of accounting.
   4. Calculate net income from following information pertaining to Edson Company.

 

Assets, January 1	$240,000
Assets, December 31	230,000
Liabilities, January 1	150,000
Share capital, December 31	80,000
Retained earnings, December 31	31,000
Ordinary shares sold during the year	10,000
Dividends declared during the year	13,000

Compute the net income for the year.

1. 5. Prepare a statement of cash flows of Stanislaus Co. for the year ending December 31, 2012

December 31

2011                      2012

                    Cash..............................................................               42,000                       63,000

Land                                                                                              $ 58,800                    $ 21,000

 

Equipment.....................................................	504,000	789,600
Inventory.......................................................	168,000	201,600
Accounts receivable (net)..............................	84,000	151,200

                       TOTAL................................................                        $856,800               $1,226,400

 

 

 

Share capital–ordinary..................................	$420,000	$      487,200
Retained earnings..........................................	67,200	205,800
Notes payable - Long-term............................	168,000	302,400
Notes payable - Short-term...........................	67,200	29,400
Accounts payable..........................................	50,400	86,000

Accumulated depreciation............................   84,000                             115,600

 

TOTAL...........................................    $856,800                     $1,226,400

 

Additional data for 2012:

1. Net income was $235,200.
2. Depreciation was $31,600.
3. Land was sold at its original cost.
4. Dividends of $96,600 were paid.
5. Equipment was purchased for $84,000 cash.
6. A long-term note for $201,600 was used to pay for an equipment purchase.
7. Share capital–ordinary was issued to pay a $67,200 long-term note payable.