ACCOUNTING

Anonymous
timer Asked: Apr 18th, 2018
account_balance_wallet $15

Question Description

TASK A

Oman Food Industry Company’s statement of financial 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 classified statement of financial 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.

Unformatted Attachment Preview

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 financial 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 classified statement of financial 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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Tutor Answer

Merdav
School: Boston College

Attached.

Running Head: Accounting

1

Accounting
Institutional Affiliation
Date

Accounting

2
TASK A
Journal Entries

Date
(Jan,2018) Detail
1 Notes Receivable
Interest revenue
Accounts receivable
1 Cash A/C
Unearned revenue
2 Equipment account
Accounts payable
2 Depreciation Expense
Accumulated Dep
3 Bad debts (Barker & Elmo)
Account receivable
3 Bad debts (Barker & Elmo)
Provision for bad debts
8 Inventory account
Account payable
10 Patent account
Cash A/C
11 Account receivable
Sales account
11 Cost of goods sold
Inventory account
15 Cash A/C
Sales account
15 Cost of goods sold
Inventory account
17 Cash A/C
Account receivable
21 Account payable
Cash A/C
27 Supplies account
Cash A/C
31 Operating expenses
Cash A/C
T-accounts to determine ending balances

Debit
Credit
1506.25
6.25
1500
1100
1100
13000
13000
2400
2400
300
300
300
300
5500
5500
500
500
3000
3000
2500
2500
180
180
12...

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Anonymous
Excellent job

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