Accounting 101 -Acct-101 assignment

1-In 2016, Omar Co. purchased a machine for 480,000 SAR cash. The machine is expected to produce 2,500,000 units during its useful life and has an estimated salvage value of 80,000 SAR. (3 Marks)

Assume that:

a.In 2016, Omar Co. produced 600,000 units

b.In 2017, 700,000 units were produced.

c.In 2018, 500,000 units were produced.

d.In 2019, 300,000 units were produced.

e.In 2020, the factory was closed for maintenance reasons.

f.In 2021, 400,000 units were produced.

Calculate the following: (4 Marks) (draw a table)

1.The amount of depreciation expense in those years?

2.The amount of accumulated depreciation?

3.The amount of book value in these years?

Answer:

2-STC has declared on 23th January to pay 2 SAR per share as cash dividend. Note, STC has 3,000,000 common shares. The dividend will be paid on 28 February to stockholders of record on January 29.

-Journalize the required entries? (2 Marks)

Answer:

3. Below is financial information extracted from financial statements for KHLED Inc. for 2016.

items	Amounts in thousands of Saudi Riyal
Net in come	200
Depreciation expense	15
Increase in accounts receivable	35
Decrease in inventory	30
Increase in accounts payable	20
Proceeds from sale of land	50
Purchases of equipment	20
Proceeds from issuance of common stock	40
Cash dividends	5
Cash, January 1, 2016	100