Accounting Services

Instructions – PLEASE READ THEM CAREFULLY

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 answers 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

Q3. Al-Ahmad Accounting Services completed these transactions in July:
a. Purchased office supplies on account, SAR 450
b. Completed work for a client on credit, SAR 1,500
c. Paid cash for the office supplies purchased in (a)
d. Completed work for a client and received SAR 800 cash
e. Received SAR 1,500 cash for the work described in (b).
f. Received SAR 3,000 in advance from a client for accounting services to be performed in September.
Prepare journal entries to record the above transactions. Explanations are not necessary.

Q4. Explain the purpose and the importance of the income statement, and prepare the income statement for ABC company based on the following information taken from the trial balance   in 2021                                                                                                                                   (4 Marks)

Q5. On October 1, Saad Co. sold merchandise in the amount of SAR 5,800 to Neom Co., with credit terms of 2/10, n/30. The cost of the items sold is SAR 4,000. Saad Co. uses the perpetual inventory system. On October 4, Neom Co. returns some of the merchandise. The selling price of the merchandise is SAR 1,500, and the cost of the merchandise returned is SAR 1,050.

Record the entry or entries that Saad Co. must make on October 4^th.

Q6.

1. Explain in your own words four costing methods of inventory with a numerical example for each                                                                                                                                          (4 Marks)
2. A company that uses a perpetual inventory system made the following cash purchases and sales. There was no beginning inventory.

Prepare general journal entries to record the March 16 sale using the FIFO inventory valuation method and the LIFO inventory valuation method