Acct101-PROJECT

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  • 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 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.

Assignment Question(s):(10 Marks)

Q1–

A. What is a bank reconciliation and why is it important for companies to do it periodically?

B. Prepare a Bank Reconciliation Statement for XYZ company that has:

  • Bank statement of SR9,000.
  • Cash account of SR7,500.

Additional information for the reconciliation:

  • Deposit in transit.
  • NSF Check.
  • Outstanding check.
  • Collections made by the bank.
    • FIFO inventory valuation method.
    • LIFO inventory valuation method.

Required: provide an amount of each information to bring the adjusted balances to be equal (3 Marks).

Q2–

Assume that you have a company. And the management estimates that 2.5% of sales will be uncollectible.

Provide an amount of sales and prepare the journal entry using the percent of sales method (2 Marks).

Q3–

A company that uses a perpetual inventory system made the following cash purchases and sales.There was no beginning inventory (3 Marks).

January 1:

Purchased 100 units at SAR10 per unit

February 5:

Purchased 60 units at SAR 12 per unit

March 16:

Sold 40 Units for SAR 16 per unit

Prepare general journal entries to record the March 16 sale using the

Q4. A company wants to implement good internal control. What are the policies and procedures you can suggest to minimize human frauds and errors? (2Marks)