Description
- 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):(Total Marks 15)
Q1.MNC Corporation purchased a new machine on January 1st, 2015. The cost of this machine was $400,000.The company estimated that the machine would have a salvage value of $40,000 at the end of its service life.Its life is estimated at 5 years and its working hours are estimated at 40,000 hours.
Calculate deprecation expenses, accumulated depreciation and book value of the machine for each of the year using:
- Straight Line Method
- Declining balance method (Based on twice the straight-line rate)
- Activity Method if MNC uses the machine hours as follows:( 5 marks)
|
Year |
Hours used |
|
2015 |
7,000 |
|
2016 |
8,500 |
|
2017 |
8,000 |
|
2018 |
9,000 |
|
2019 |
7,500 |
You can use following table to present your answer:
|
Year |
Depreciation Expense |
Accumulated Depreciation |
Book Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Answer:
Q2. ABC Ltd. is a metal product manufacturing company. The following are the purchases and issues during the month of July, 2024:(5 Marks)
|
Date |
||
|
July 1 |
Beginning Inventory |
400 units @ $120 |
|
July 6 |
Purchase |
250 units @ $150 |
|
July 11 |
Purchase |
200 units @ $100 |
|
July 17 |
Sales |
600 units @ $300 |
|
July 19 |
Purchase |
150 units @ $120 |
|
July 21 |
Purchase |
350 units @ $160 |
|
July 31 |
Sales |
500 units @ $350 |
Required:
Using FIFO and Average Cost Method-
- Find out the value of Ending Inventory after each transaction.
- Find out the value of cost of goods sold after each sale.
Note: You can round off the values for the calculations under average cost method.
Answer:
Q3.Presented below are the components related to the Stadium Building that Riyadh construction Company is considering purchasing for SAR11,000,000.
ComponentUseful LifeValue
Stadium Building structure50-year life6,800,000
Stadium Building engineering25-year life3,750,000
Stadium Building external works25-year life 1,000,000
Instructions
- Compute depreciation expense for 2024, assuming that Riyadh construction uses component depreciation. (2.5 marks)
(b)Assume that the building engineering was replaced in 20 years at a cost of SAR 4,000,000. Prepare a journal entry to record the replacement of the old component with the new component. (2.5 marks)
Answer:
Assignment 2
Deadline: 19/04/2025@ 23:59
Course Name: Financial Accounting
Student’s Name:
Course Code: ACCT 201
Student’s ID Number:
Semester: 2nd -2024-25
CRN:
Academic Year: 1446 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained
/Out of 15
Level of Marks: High / Middle / Low
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):
(Total Marks 15)
Q1. MNC Corporation purchased a new machine on January 1st, 2015. The cost of this machine
was $400,000. The company estimated that the machine would have a salvage value of $40,000
at the end of its service life. Its life is estimated at 5 years and its working hours are estimated
at 40,000 hours.
Calculate deprecation expenses, accumulated depreciation and book value of the machine for
each of the year using:
i.
Straight Line Method
ii.
Declining balance method (Based on twice the straight-line rate)
iii.
Activity Method if MNC uses the machine hours as follows: ( 5 marks)
Year
Hours used
2015
7,000
2016
8,500
2017
8,000
2018
9,000
2019
7,500
You can use following table to present your answer:
Year
Answer:
Depreciation Expense
Accumulated Depreciation
Book Value
Q2. ABC Ltd. is a metal product manufacturing company. The following are the purchases and
issues during the month of July, 2024:
(5 Marks)
Date
July 1
Beginning Inventory
400 units @ $120
July 6
Purchase
250 units @ $150
July 11
Purchase
200 units @ $100
July 17
Sales
600 units @ $300
July 19
Purchase
150 units @ $120
July 21
Purchase
350 units @ $160
July 31
Sales
500 units @ $350
Required:
Using FIFO and Average Cost Methoda) Find out the value of Ending Inventory after each transaction.
b) Find out the value of cost of goods sold after each sale.
Note: You can round off the values for the calculations under average cost method.
Answer:
Q3. Presented below are the components related to the Stadium Building that Riyadh
construction Company is considering purchasing for SAR11,000,000.
Component
Useful Life
Value
Stadium Building structure
50-year life
6,800,000
Stadium Building engineering
25-year life
3,750,000
Stadium Building external works
25-year life
1,000,000
Instructions
(a) Compute depreciation expense for 2024, assuming that Riyadh construction uses
component depreciation. (2.5 marks)
(b) Assume that the building engineering was replaced in 20 years at a cost of SAR
4,000,000. Prepare a journal entry to record the replacement of the old component
with the new component. (2.5 marks)
Answer:
Purchase answer to see full
attachment
