Accounting 101 -Acct-101 assignment
1-In 2016, Omar Co. purchased a machine for 480,000 SAR cash. The machine is expected to produce 2,500,000 units during its useful life and has an estimated salvage value of 80,000 SAR. (3 Marks)Assume that:a.In 2016, Omar Co. produced 600,000 units b.In 2017, 700,000 units were produced.c.In 2018, 500,000 units were produced.d.In 2019, 300,000 units were produced.e.In 2020, the factory was closed for maintenance reasons.f.In 2021, 400,000 units were produced.Calculate the following: (4 Marks) (draw a table)1.The amount of depreciation expense in those years?2.The amount of accumulated depreciation?3.The amount of book value in these years? Answer:2-STC has declared on 23th January to pay 2 SAR per share as cash dividend. Note, STC has 3,000,000 common shares. The dividend will be paid on 28 February to stockholders of record on January 29. -Journalize the required entries? (2 Marks) Answer:3. Below is financial information extracted from financial statements for KHLED Inc. for 2016. items Amounts in thousands of Saudi Riyal Net in come 200 Depreciation expense 15 Increase in accounts receivable 35 Decrease in inventory 30 Increase in accounts payable 20 Proceeds from sale of land 50 Purchases of equipment 20 Proceeds from issuance of common stock 40 Cash dividends 5 Cash, January 1, 2016 100 Required: Prepare cash flow statement for KHALED Inc. for 2016 using indirect method.
