ACCOUNTING

TASK A Oman Food Industry Company’s statement of ?nancial position at December 31, 2017, is presented below. Oman Food Industry Company Statement of Financial Position December 31, 2017 Inventory9,400 Share capital—ordinary30,000 Accounts receivable 19,780 Retained earnings12,730 Allowance for doubtful accounts (800) Accounts payable8,750 Cash23,100 Total Assets51,480 Total Equity and Liabilities51,480 During January 2018, the following transactions occurred. Jan. 1Oman Food Industry accepted a 6-month, 5% note from Nizwa Transport Company in payment of OR 1,500 Jan. 1The unearned rent revenue of 6,600 was received for 6 months rent. Jan. 2Oman Food Industry purchased equipment for OR 13,000 on account. The equipment is being depreciated using the straight-line method over 5 years, with a residual value of 1,000. Jan. 3Oman Food Industry wrote off as uncollectible the accounts of Barker Corporation – OR 200 and Elmo Company – OR 100. Jan. 8Oman Food Industry purchased OR 5,500 of inventory on account. Jan. 10 The patent was acquired for OR 500 cash and has a useful life of 10 years from that date. Jan. 11 Oman Food Industry sold for OR 3,000 on account inventory that cost OR 2,500. Jan. 15 Oman Food Industry sold inventory that cost OR 120 to Mr Mohammed for OR 180 cash. Jan. 17 Oman Food Industry collected OR 12,000 from customers on account. Jan. 21 Oman Food Industry paid OR 11,300 on accounts payable. Jan. 27 Oman Food Industry purchased supplies for OR 1,500 cash. Jan. 31 Oman Food Industry paid other operating expenses – OR 3,218. Adjustment data: 1. Interest is recorded for the month on the note from January 1. 2. Bad debts are expected to be 5% of the January 31, 2018, accounts receivable. 3. Unpaid salaries and wages at December 31, 2018, total 2,200. INSTRUCTIONS: (You need to set up T-accounts to determine ending balances). (a) Prepare journal entries for the transactions listed above and adjusting entries. (b) Prepare an adjusted trial balance at January 31, 2018. (c) Prepare an income statement and a retained earnings statement for the month ending January 31, 2018, and a classi?ed statement of ?nancial position as of January 31, 2018. TASK B The income statement of Muscat Port Trade Company is presented below. Additional information: 1. Accounts receivable decreased 230,000 during the year, and inventory increased 120,000. 2. Prepaid expenses increased 125,000 during the year.? 3. Accounts payable to merchandise suppliers increased 50,000 during the year. 4. Accrued expenses payable increased 155,000 during the year. Muscat Port Trade Company? Income Statement? For the Year Ended December 31, 2016 Service revenue 5,250,000 Cost of goods sold Beginning inventory 1,780,000 Purchases 3,430,000 Goods available for sale 5,210,000 Ending inventory 1,900,000 Total cost of goods sold 3,310,000 Gross profit 1,940,000 Operating expenses Depreciation expense 95,000 Amortization expense 20,000 Other expenses 945,0001,060,000 Net income 880,000 INSTRUCTIONS: Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2016, for Muscat Port Trade Company, using the indirect method.
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Sohar University
Faculty of Business
BUAC 1302 ACCOUNTING II
Group Assignment
Student Name
1234-
Instructor:
Date of submission: ____________________________
MARKS : _____________(out of 25)
Student ID
Lecture
Section
1 2
1 2
1 2
1 2
Page |2
Date of Assignment release:
1 April, 2018
Deadline for submitting the Assignment:
2 pm, 13 May, 2017.
Instructions
1-
The Assignment is to be completed by the group of 4 students, working as a
team and carrying the group responsibility for the quality of the work submitted.
2-
The assignment is to be typed, on A4 size white paper.
T-Accounts can be either in handwriting or typed. All pages are to be numbered.
3-
Any copying of other’s assignment or allowing others to copy your assignment
will lead to zero marking for both the parties.
Accounting II 2017-2018
Group Assignment
2
Page |3
TASK A
Oman Food Industry Company’s statement of ?nancial position at December 31, 2017, is
presented below.
Oman Food Industry Company
Statement of Financial Position
December 31, 2017
Inventory
9,400
Share capital—ordinary
Accounts receivable
19,780
Retained earnings
Allowance for doubtful accounts (800)
Accounts payable
Cash
23,100
Total Assets
51,480
Total Equity and Liabilities
30,000
12,730
8,750
51,480
During January 2018, the following transactions occurred.
Jan. 1 Oman Food Industry accepted a 6-month, 5% note from Nizwa Transport Company in
payment of OR 1,500
Jan. 1 The unearned rent revenue of 6,600 was received for 6 months rent.
Jan. 2 Oman Food Industry purchased equipment for OR 13,000 on account. The equipment is
being depreciated using the straight-line method over 5 years, with a residual value of 1,000.
Jan. 3 Oman Food Industry wrote off as uncollectible the accounts of Barker Corporation –
OR 200 and Elmo Company – OR 100.
Jan. 8 Oman Food Industry purchased OR 5,500 of inventory on account.
Jan. 10 The patent was acquired for OR 500 cash and has a useful life of 10 years from that
date.
Jan. 11 Oman Food Industry sold for OR 3,000 on account inventory that cost OR 2,500.
Jan. 15 Oman Food Industry sold inventory that cost OR 120 to Mr Mohammed for OR 180 cash.
Jan. 17 Oman Food Industry collected OR 12,000 from customers on account.
Jan. 21 Oman Food Industry paid OR 11,300 on accounts payable.
Jan. 27 Oman Food Industry purchased supplies for OR 1,500 cash.
Jan. 31 Oman Food Industry paid other operating expenses – OR 3,218.
Adjustment data:
1. Interest is recorded for the month on the note from January 1.
2. Bad debts are expected to be 5% of the January 31, 2018, accounts receivable.
3. Unpaid salaries and wages at December 31, 2018, total 2,200.
Accounting II 2017-2018
Group Assignment
3
Page |4
INSTRUCTIONS: (You need to set up T-accounts to determine ending balances).
(a) Prepare journal entries for the transactions listed above and adjusting entries.
(b) Prepare an adjusted trial balance at January 31, 2018.
(c) Prepare an income statement and a retained earnings statement for the month ending
January 31, 2018, and a classi?ed statement of ?nancial position as of January 31, 2018.
TASK B
The income statement of Muscat Port Trade Company is presented below.
Additional information:
1. Accounts receivable decreased 230,000 during the year, and inventory increased 120,000.
2. Prepaid expenses increased 125,000 during the year.
3. Accounts payable to merchandise suppliers increased 50,000 during the year.
4. Accrued expenses payable increased 155,000 during the year.
Muscat Port Trade Company
Income Statement
For the Year Ended December 31, 2016
Service revenue
Cost of goods sold
Beginning inventory
Purchases
Goods available for sale
Ending inventory
Total cost of goods sold
Gross profit
Operating expenses
Depreciation expense
Amortization expense
Other expenses
Net income
5,250,000
1,780,000
3,430,000
5,210,000
1,900,000
3,310,000
1,940,000
95,000
20,000
945,000
1,060,000
880,000
INSTRUCTIONS:
Prepare the operating activities section of the statement of cash flows for the year
ended December 31, 2016, for Muscat Port Trade Company, using the indirect method.
Accounting II 2017-2018
Group Assignment
4

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