On your own words, outline the accounting principles and assumptions and explain each one. What is the accounting cycle? Explain every step starting from analyzing transactions to preparing post-closing trial balance.

/in /by

Accounting cycle

Assignment Question(s):   (Marks15)

Q1. On your own words, outline the accounting principles and assumptions and explain each one.    (Marks5)

Q2. What is the accounting cycle? Explain every step starting from analyzing transactions to preparing post-closing trial balance.  (Marks5)

Q3. Based on the following trial balance for ABC Co, prepare an income statement, statement of retained earnings and a balance sheet. The company made no additional investments in the company during the year.    (Marks5)

ABC Co.

Trial Balance

December 31
Cash SR 6,500  
Accounts receivable 475  
Supplies 2,500  
Equipment 17,000  
Accounts payable   SR  745
Common stock   10,000
Retained earnings   11,155
Dividends 36,000  
Revenue earned   72,000
Supplies expense 3,425  
Rent expense 6,000  
Wages expense 22,000  
Totals SR93,900 SR93,900

 

Would an increase in variable costs per unit cause a company’s break-even point to increase or decrease? Why? Would an increase in unit selling price cause a company’s break-even point to increase or decrease? Why?

/in /by

Discuss your answers to the following questions:

  1. Would an increase in variable costs per unit cause a company’s break-even point to increase or decrease? Why?
  2. Would an increase in unit selling price cause a company’s break-even point to increase or decrease? Why?
  3. An examination of the accounting records of Alinma Company disclosed a high contribution margin ratio and production at a level below maximum capacity. Based on this information, discuss a likely means of improving operating income. Explain your answer by sharing the calculations needed.
  4. Both Alireza Company and Jarir Company had the same unit sales, total costs, and operating income for the current fiscal year; yet, Alireza Company had a lower break-even point than Jarir Company.Discuss the reason for this difference in break-even points and provide and example of this calculation.

Embed course material concepts, principles, and theories (which requires supporting citations) along with at least one scholarly, peer-reviewed reference supporting your answer. Keep in mind that these scholarly references can be found in the Saudi Electronic Library by conducting an advanced search specific to scholarly references.

You are required to reply to at least two peer discussion question post answers to the weekly discussion question. These peer replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that answer. Normal course dialogue does not fulfill these two peer replies but is expected throughout the course. Answering all course questions is also required.

 

In general, what costs should be capitalized for a self-constructed asset? Discuss two alternatives for the inclusion of overhead costs in the cost of the equipment constructed by Chilton. Which alternative is generally accepted for financial reporting purposes?

/in /by

Judgment Case 10-5 Self-constructed assets; interest capitalization LI L010-7

Chilton Peripherals manufactures printers, scanners, and other computer peripheral equipment. In the past, the company purchased equipment used in manufacturing from an outside vendor. In March 2024, Chilton decided to design and build equipment to replace some obsolete equipment. A section of the manufacturing plant was set aside to develop and produce the equipment. Additional personnel were hired for the project. The equipment was completed and ready for use in September.

Required:

I. In general, what costs should be capitalized for a self-constructed asset?

2. Discuss two alternatives for the inclusion of overhead costs in the cost of the equipment constructed by Chilton. Which alternative is generally accepted for financial reporting purposes?

3. Under what circumstance(s) would interest be included in the cost of the equipment?

4. Over what period should interest be capitalized?

5. Describe the three steps used to determine the amount of interest capitalized during a reporting period.

Explain the tax treatment for the following transactions under article (9) of the income tax law. Tax payer has personal asset valued at SAR 100,000 a cost base of SAR 80,000. Earning gains of SAR 20,000. What is the gain or loss on the disposed asset?

/in /by

Tax treatment

Q1. Explain the tax treatment for the following transactions under article (9) of the income tax law :( 7.5 marks)

  1. Tax payer has personal asset valued at SAR 100,000 a cost base of SAR 80,000. Earning gains of SAR 20,000. What is the gain or loss on the disposed asset?

Tax payer has an asset of two components and he disposed one component for SAR 50,000 Cash. The tax payer purchased that asset for SAR 100,000 Cash 5 years ago. The expert valued that assets at the time of purchase for SAR 200,000 out of which SAR 70,000 was belong to the disposed component. What is the gain or loss on the disposed asset?

Tax payer possess land with book value of SAR 100,000 and he paid SAR 20,000 Cash to improve the land. Are expenses deductible?

  1. Tax payer disposed an asset encumbered by debt amounted to SAR 120,000 but  Its market value is SAR 100,000 with cost base  of SAR 80,000  .What is the gain or loss on the disposed asset?

Tax payer converted an asset used in the activity to his personal use with a cost base of SAR 50,000 and market value of SAR 40,000. What is the gain or loss on the disposed asset and whether gains or losses taken into consideration when determining tax base?

 

 Q2. Tax payer incurred expenses of SAR 10,000 to alter and improve equipment with a cost base of SAR 100,000. Are these expenses deductible under article 18 of the law? (2.5 marks)

 

Q3.  Tax payer recorded the following journal entry (2.5 marks)

D r.  Bad debt expense    10,000 Cr. Provision for doubtful receivable    10,000

Required: Is that provision deductible under article (14) of the law 1n 2020 D r. Accounts receivable (Ibrahim)   100,000

Cr. Sales      100,00 In 2021

D r.   Bad debt expense 20,000  Cr. Accounts receivable Ibrahim)

Required:  Is that bad debt expense deductible under article (14) of the law?

 

Q4. In financial accounting tax payers can choose any depreciation rates  for depreciable assets ,but when tax payers prepare theie tax base , they must apply depreciation rates according to article (17 ) of the income tax law, So, explain depreciation rates according to article (17) (2.5 marks)

 

select one business concept to pursue their entire team’s products developed to date. Following the template in Appendix 3.2 of the textbook, evaluate ALL the ideas and select the best idea to pursue.

/in /by

Team’s products developed

You are required to select one business concept to pursue their entire team’s products developed to date. Following the template in Appendix 3.2 of the textbook (p. 114), (Appendix 3.2 also available as a document), each person will evaluate ALL the ideas and select the best idea to pursue. You are required to present the evaluation result of all ideas in the document.

The final report should have the following 5 components.

1.Name of the venture/Your name

2.A summary of the overall assessment: which business idea to pursue and why.

3.Develop a list of at least 30 “Have to Know” questions

4.An analysis of ALL ideas evaluated by using the template in Appendix 3.2.

5.Appendix: any extra work you’ve done

If the analysis is done properly, the final report should be at least 5 pages long with text and tables. You will receive a tentative grade for this report. The grade is not finalized until you submit the final business plan. Your final grade may be higher or lower than the tentative grade you receive from this assignment.

 

Write a description of the research problem you propose to investigate and explain why you chose this topic. What should be considered in developing a good research idea?

/in /by

Accounting research and practice

Adhere to the instructions attached to the file, do not copy and repeat the solution, mention the reference, and avoid plagiarism.

Question 2: Write a description of the research problem you propose to investigate and explain why you chose this topic.

Question 3: What should be considered in developing a good research idea?

Question 4: What are the five categories of research methods?

Question 5: Differentiate between Quantitative vs. Qualitative research.

Question 6: Define ANOVA and Regression Analysis

 

What amount should be reported in the 30 June 2020 statement of financial position for Prepaid Insurance? If no adjusting entry was made on 30 June, by how much would profit be overstated or understated? Would assets be overstated or understated? Explain.

/in /by

Accounting assignment

Question 1
Recording transactions Jones’ Mower Repairs began operations on 1 August 2019 and completed the following transactions during the first month. 1. Darren Jones deposited $35 000 of his personal funds in a current account at a bank opened in the name of the business. 2. Mower repair equipment was purchased at a cost of $24 000, of which $14 000 was paid in cash. A loan payable was given for the remainder. 3. Darren collected $5000 from customers for repair services performed. 4. Shop rent was paid for the month of August, $1500. 5. Supplies amounting to $2100 were purchased on credit. 6. Wages of $1200 were paid as well as an account for electricity, $250. 7. Darren paid for the supplies purchased in (5) above. 8. Supplies used during August amounted to $750.
Required

(a) Prepare a schedule and list the following Assets, Liabilities and Equity as column headings: Cash at Bank; Supplies; Equipment; Loan Payable; Accounts Payable; D. Jones, Capital.

(b) Show the effects of each of the transactions on the accounts listed. Indicate totals after each transaction and complete the schedule.

(c) Prepare an Income Statement and a Statement of Changes in Equity for the month ended 31 August 2019, and a balance sheet as at 31 August 2019.

Question 2
Adjusting entry for prepaid insurance Kreative Kitchens purchased a 1-year insurance policy on 1 March 2020. The entire premium of $9000 was recorded by debiting Prepaid Insurance. Ignore GST. Required

(a) Give the adjusting entry at 30 June for year ending 30 June 2020.

(b) What amount should be reported in the 30 June 2020 statement of financial position for Prepaid Insurance?

(c) If no adjusting entry was made on 30 June, by how much would profit be overstated or understated? Would assets be overstated or understated? Explain.

(d) What would your adjusting entry in requirement A be if the premium of $9000 was recorded by debiting Insurance Expense?

Research and describe the company’s primary business activities. Provide information regarding the company’s history. Provide information regarding the company’s position within their industry.

/in /by

Financial Analysis Project

Part 1 (Provide at least one slide for each part with at least 8 bullets per slide)
1) Research and describe the company’s primary business activities (Make sure you pick a company that shows 4 Annual Financial Statements – you will need it for Part 3, Part 4, Part 5 & Part 6);
2) Provide information regarding the company’s history;
3) Provide information regarding the company’s position within their industry;
4) Provide information regarding the company’s competition;
5) Provide information regarding the company’s recent developments, and future direction.
6) Use your own words to respond to the questions above.

Summarized News Items
Part 2 (Provide at least one slide for each part and at least 8 bullets per slide)
Summarize in your own words at least two significant news items from recent articles or reports about company.
Use the library’s academic databases to search for news about the company.
Cite quoted and paraphrased material appropriately
Your responses must be SUBSTANTIVE, RELEVANT and COHERENT SENTENCES.

Income Statement Analysis
Part 3 (Provide at least one slide for each part and at least 8 bullets per slide)
 Analyze the company’s last four annual income statements. Pay special attention to the total expenses and the net income (loss).
 Use the last 4 ANNUAL Income statement or Profit and Loss Statements.
 Identify trends, concerns, and opportunities.
 At the broadest level, the income statement reports for a specific, discrete period of time (typically a year or a quarter) Readers of the income statement are also looking for hints about the company’s future performance.

Cash Flow Statement Analysis
Part 4 (Provide at least one slide for each part and at least 8 bullets per slide)
 Analyze the company’s last four annual cash flow statements.
 Identify trends
 Identify concerns, and
 Identify opportunities.
Pay special attention to the highest cash inflow and cash outflow.

Balance Sheet Analysis
Part 5 (Provide at least one slide for each part and at least 8 bullets per slide)
 Analyze the company’s last four annual balance sheets.
 Identify trends
 Identify concerns
 Identify opportunities.
Pay special attention to increases and decreases in the current asset accounts (cash, A/R, inventories, etc.) and long-term assets (buildings, equipment, etc.)

Stockholders’ Equity Analysis

Part 6 (Provide at least one slide for each part and at least 8 bullets per slide)
 Analyze the company’s last four statements of stockholders’ equity.
 Identify trends
 Identify concerns
 Identify opportunities.
Pay special attention to retained earnings increase or decrease, dividends, etc.

Ratio Analysis

Part 7 (Provide at least one slide for each part and at least 8 bullets per slide)
 Identify the following ratios for the company: current, quick, gross profit margin, price/earnings, debt-to-equity, return on assets, and return on equity. Pick at least two ratios. Show the amount that you use to calculate the ratios.
 What does each ratio tell you about this firm’s current financial position?

Recommendations and Justification

Part 8 (Provide at least one slide for each part and at least 8 bullets per slide)
 Explain why you would or would not recommend an investment in this company.
 Justify your recommendations based on the financial analysis and research you conducted regarding this firm.

References
Three or More Sources in APA or MLA format [Incorporate research tostrengthen your analysis.

Using a dividend discount model, what is the value of a stock that pays an annual dividend of $5 that is not expected to grow and the discount rate is 10%? What will be the value of the stock if the dividend is expected to grow 5% per year?

/in /by

RISK, RETURN, AND STOCK VALUATION CASE 3

Assignment Overview
For this assignment, Questions 1 and 3 are computational in nature. Questions 2 and 4 are conceptual questions. So make sure to thoroughly review the required background readings and make sure you understand the material at a conceptual level and also understand the steps involved in the computations.

Case Assignment
Download the Case 3 Template. You will type your answers into this document. Save the document with your last name and submit to the drop box. Note that you will get partial credit if you show your work even if the answers are incorrect.

1. Using a dividend discount model, what is the value of a stock that pays an annual dividend of $5 that is not expected to grow and the discount rate is 10%? What will be the value of the stock if the dividend is expected to grow 5% per year?

2. Explain whether each of the following is systematic or unsystematic risk using references to the required background readings:
a. There is a large recession.

b. It is discovered that a company lied about its earnings and it is not nearly as profitable as they claimed.

c. The CEO of a successful company gets arrested for some serious crimes, and the company has trouble finding a good replacement.

3.Use the CAPM to calculate the following:

a. The expected return of a stock with a beta of 2, and risk-free rate of 1%, and a market return of 7%.

b. The beta if the expected return of the stock is 8%, the risk-free rate is 2%, and the market rate of return is 6%.

4. Do you think the following companies would have a high, low, or average beta? Explain your answer using references from the background readings and your knowledge of CAPM and beta:

a. The ACME Umbrella company’s stock goes up a lot when it rains, but goes down when it is sunny. Nothing else but the weather seems to impact ACME’s stock price.

b. Vultures, Inc., specializes in buying assets of bankrupt companies at a discount. Vultures’ stock price seems to go up whenever other companies are doing poorly and going bankrupt, but goes down when other companies are doing well and they have few bankrupt companies to prey on.

c. Unoriginal, Inc., can never decide what products they want to focus on so they make many different products in several different industries. They also invest much of their profits into 100 or so other companies that are listed on the stock exchange.