Assignment 3

Deadline: 23/11/2019 @ 23:59

Course Name: Principles of Accounting Student’s Name: Abdullah alqarni

Course Code: ACCT101 Student’s ID Number: 180160384
Semester: I CRN:10258
Academic Year: 1440/1441 H

For Instructor’s Use only

Instructor’s Name:
Students’ Grade: Marks Level of Marks: High/Middle/Low
Obtained/Out of 5

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 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).
 Submissions without this cover page will NOT be accepted.
Assignment Question(s): (5 Marks)
Q1- Khaled’s company issued and sold $500,000 bond payable on January 1, 2019,
with an interest rate of 6%, 5-year and received $465,000. Interest is payable each June
30 and December 31. The company uses the straight-line method to amortize the
discount. Prepare the journal entries to record these transactions on January 1st, at the
first interest payment and at the maturity date?

Q2- Prepare the journal entries to record these transactions:

A. At the beginning of the year Mohammed, Inc. issued an amount of shares of 5

par value stock for 30 per share. (Provide an amount of the stock issued)?
B. On December 1st, Mohammed’s, Inc. declared a 5 per share cash dividend, for
an amount of common shares outstanding (Provide an amount of the common
shares). The dividend will be paid on December 31 to stockholders of record on
December 15?

Q3- Here is the following information for Abdullah’s Company, please calculate the
net cash provided by operating activities using the indirect method: by providing an
amount of each information below:

Net income:
Depreciation expense:
Accounts receivable decreased:
Gain on sale of land:
Merchandise inventory increased:
Proceeds from sale of land:
Prepaid expenses decreased:
Accounts payable increased:
Q1)

Acc DR CR
Cash 465,000
Discount on B. P 35000
B. P 500000

Acc DR CR
INT expense 37000
Discount on B. P 7000
Cash 300000

Q2)

1000 shares

Acc DR CR
Cash 30000
Common stock 5000
Paid in capital 25000

1000 dividends

Acc DR CR
Cash dividends 5000
Cash dividends payable 5000

Acc DR CR
Cash dividends payable 5000
Cash 5000
Q3)

Net income: 1000

Depreciation expense: 20

Accounts receivable decreased: 40

Gain on sale of land: 80

Merchandise inventory increased: 50

Proceeds from sale of land: 70

Prepaid expenses decreased: 20

Accounts payable increased 50

net cash provided by operating activities 1070