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College of Administrative and Financial Sciences
Assignment 1
Deadline: 16/10/2021@ 23:59
Course Name: GNP Accounting

Student’s Name:

Course Code: ACCT 321

Student’s ID Number:

Semester: 1

CRN:
Academic Year:2021-22 /1443 H

For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained

/5

Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULL
• 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.

Answer all Questions (Total Marks 5)

1. Identify the governmental, business and fiduciary type of activities carried on by the
government of KSA. Give examples of the organizations in KSA. (Mark 1)
The government executes its duties through various ministries and state departments. Roles are
allocated in line with the country’s vision which allows the government to implement different
development programs. Government roles include the setting of laws overnim operations in
Saudi Arabia, such laws include cross-border restrictions to protect domestic firms. The
government has also restructured its operations to meet its vision goals, a good example being
the dismantling of Kafala sponsorship program. The government is involved in developing and
implementing policies such as production, mining and consumer protection.
Business Activities
Fuel is a major source of government revenue and the government is directly involved in mining
and refining of oil. The government also controls ammonia industries to ensue sufficient as
supply. KSA government produces fertilizers and chemicals and is also involved in the repair of
ships as well as aircraft construction. All these activities are achieved through control and
ownership of factories such as SABIC, Almarai and Saudi Telecom.
FudiciaryDuties
KSA legislature varies from other regions such as the Latin America and United Kingdom.
However, the main fiduciary duties are included in the companies act and are all control attempts
of regulating firms. Another fiduciary relation is the contribution of companies to the economy
through payment of corporate taxes.

Company example
We can consider Saudi Aramco which exists as a leader in oil and as manufacture. The company
roles include mining activities and production of oil. The company ordinates operations with
other international firms through joint ventures. The ventures include Petro Rabigh and Mobil
refinery which helps in oil refinery.
Aramco has a workforce of more than 65,000 employees and has been a driving force for the
country economy and government revenue. The government executes its mandate through the
ministry of energy which controls mining activities in Saudi Aramco.

2. The council of the Town of Fursan approved the 2019 budget as follows: (Mark 1)

Budgeted 2019 revenues from:
Property taxes

$4,000,000

Sales taxes

$1,000,000

Appropriations for 2019:

Salaries

$3,600,000

Materials

$1,000,000

Equipment

$100,000

During 2019, the town’s mayor presented the council with a budget revision
to increase the amount of appropriation for salaries by $50,000. The council
approved this budget revision.

Required:
a.

Prepare the general journal entry necessary to initially record the budget.

b.

Prepare the general journal entry necessary to record the budget revision.

No

Details

Dr

1

Revenue from

$4000000

Cr

property tax
Sale Tax revenues

$1000000

Salary appropriation

$3600000

Materials

$1000000

appropriation
Equipment
appropriation

$100,000

Budget Funds
balance

b] general journal

2.0

Dr

Budget fund balances

Cr

50,000

To salary

50,000

appropriation
3. Prepare entries to record the following transactions and events related to Max
County's tax revenues for the year beginning January 1, 2013: (Mark 1)

a. To raise property tax revenue of $750,000, the County bills its
property owners a total of $752,000, providing $2,000 for
uncollectible and refundable taxes.
b. During the year, taxpayers pay a total of $650,000 in property taxes.
c. Edam declares bankruptcy, owing the County $2,000 in property
taxes. The County writes off the unpaid amount as uncollectible.
d. The state collects sales taxes on behalf of Max County. It sends the
County $150,000 for sales taxes collected during the year.
e.

At year-end, the County declares all unpaid property taxes to be delinquent

No

Details

Dr

a

Receivable tax

$752,000

Cr

revenue

b

Tax refunds

$2000

Tax revenue

$750,000

Cash received

$650,000

To property taxes
c

Refund allowance

$650,000
$2000

Tax receivable
d

Adjusted tax

$2000
$50,000

Deferred

e

Delinquent taxes
Receivable tax

$50,000

$100,000
100,000

4. From the information below prepare Financial Statements (Mark 2)

Cash

Taxes receivable, net

20,000

147,000

Investments

65,000

Due from other funds

68,000

Vouchers payable

39,000

Due to other funds

152,750

Unassigned fund balance

117,000

Estimated revenues

Appropriations

610,000

590,000

Budgetary fund balance

20,000

Revenues-taxes

590,175

Revenues-charges for services

Expenditures-personal services

Expenditures-supplies

14,080

287,125

29,680

Expenditures-capital outlay

244,000

Transfer in from debt service fund

Transfers out to capital projects fund

32,500

84,700

0

$1,555,505

$1,555,505

We can adjust to close the entries
Revenues
Revenue

590,175

Service revenue 14,080

Unassigned finds

8750

Debt transfers

32,500

Total

645,505

Expenses

Capital expense

244000

Personal expenses

287125

Capital transfer

84700

Supply expenses

29,680

Total

645,505

Balance Sheet
Assets
Cash Available

20, 000

Investment

65000

Fund Dues

68,000

Received tax

147,000

Total assets

300,000

Liabilities

Funds Due

152,750

Payable vouchers

39,000

Net liabilities

191,750

Capital in unreserved funds

108,250

C+L

300,000

Adjusted Trial Balance
Dr
Cash Balances

20,000

Receivable taxes

147,000

Total investment

65,00

Due Funds

68,000

Cr

Payable Vouchers

39,000

Due Funds

152,750

Funds balance

117,000

Revenues

610,000

Appropriated funds
Budget balance
Taxes

590,000
20,000
590175

Personal expenses

287125

Supply expenses

29,680

Service chare
Transfers out

14080
84,700

Transfers in

32,500

Capital expenses

244,000

Total

1555505

1555505


Title page 1
Question 1 2
Question 2 3
Question 3 5
Question 4 7
References 12

Please view explanation and answer below.

1

College of Administrative and Financial Sciences
Assignment 1
Deadline: 16/10/2021@ 23:59
Course Name: GNP Accounting

Student’s Name:

Course Code: ACCT 321

Student’s ID Number:

Semester: 1

CRN:
Academic Year:2021-22 /1443 H

For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained

/5

Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via the
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 in your information on the cover
page.
• Students must mention question numbers clearly in their answers.
• 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).

2

• Submissions without this cover page will NOT be accepted.
Answer all Questions (Total Marks 5)

1. Identify the governmental, business, and fiduciary types of activities carried on by
the government of KSA. Give examples of the organizations in KSA. (Mark 1)
The government executes its duties through various ministries and state departments. Roles are
allocated in line with the country’s vision which allows the government to implement different
development programs. Government roles include the setting of laws overnim operations in
Saudi Arabia, such laws include cross-border restrictions to protect domestic firms (Aljarallah and
Lock, 2018).

The government has also restructured its operations to meet its vision goals, a good

example being the dismantling of the Kafala sponsorship program (Althuwaini and Salem, n.d). The
government is involved in developing and implementing policies such as production, mining,
and consumer protection.
Business Activities
Fuel is a major source of government revenue and the government is directly involved in the
mining and refining of oil. The government also controls ammonia industries to ensure sufficient
supply. KSA government produces fertilizers and chemicals and is also involved in the repair of
ships as well as aircraft construction (Santa, MacDonald, and Ferrer, 2019). All these activities are
achieved through control and ownership of factories such as SABIC, Almarai, and Saudi
Telecom.
FudiciaryDuties

3
KSA legislature varies from other regions such as Latin America and the United Kingdom.
However, the main fiduciary duties are included in the companies act and are all control attempts
of regulating firms. Another fiduciary relation is the contribution of companies to the economy
through the payment of corporate ...