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Abdullah and Sons, a Saudi affiliate of a major U.S.-based Hitech Company, Beginning of the year o Starts the year of 2019 with 100 million
Abdullah and Sons, a Saudi affiliate of a major U.S.-based Hitech Company, Beginning of the year o Starts the year of 2019 with 100 million Saudi Riyal cash equity investment. - It immediately acquires a factory for 80 million Saudi Riyal. They also purchase machinery for 6 Million Saudi Riyal. In the middle of the year o Purchase an additional office equipment amounted to 4.5 Million Saudi Riyal - Made an investment of 5 Million Saudi Riyal. - o Sales revenue of SR16 million during the year. The operating expenses of SR7 million paid during the year. At the end of the year Received cash dividend amounted to 150,000 Saudi Riyal. Additional information _o The factory, comprising 90% of the original purchase price (balance attributed to land), o An estimated useful life of 25 years and is depreciated using the straight-line method. The factory, comprising 90% of the original purchase price (balance attributed to land), An estimated useful life of 25 years and is depreciated using the straight-line method. The machinery and office equipment are depreciated using the straight-line method and having a useful life of 15 vears. 1. Restate the Income Statement 2. Prepare a monetary gain or loss schedule for Abdullah \& Sons Corporation as at 31 December 2019 by using historical cost constant value model. (Must write factor applied for adjustments) \begin{tabular}{:l|c|c|c|c|} Use of Cash & Historical Cost Accounting (Thousand SAR) & Price level adjustment & Historical Cost -Constant Value (Thousand SAR) \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline Beginning - Cash & 100,000 & \\ \hline Purchase of factory & 80,000 & \\ \hline Purchase of Machinery & 6,000 & \\ \hline \end{tabular} Sales revenue Operating Expenses Dividend Revenue Cash ending Balance Monetary Gain / (Loss) Abdullah and Sons, a Saudi affiliate of a major U.S.-based Hitech Company, Beginning of the year o Starts the year of 2019 with 100 million Saudi Riyal cash equity investment. - It immediately acquires a factory for 80 million Saudi Riyal. They also purchase machinery for 6 Million Saudi Riyal. In the middle of the year o Purchase an additional office equipment amounted to 4.5 Million Saudi Riyal - Made an investment of 5 Million Saudi Riyal. - o Sales revenue of SR16 million during the year. The operating expenses of SR7 million paid during the year. At the end of the year Received cash dividend amounted to 150,000 Saudi Riyal. Additional information _o The factory, comprising 90% of the original purchase price (balance attributed to land), o An estimated useful life of 25 years and is depreciated using the straight-line method. The factory, comprising 90% of the original purchase price (balance attributed to land), An estimated useful life of 25 years and is depreciated using the straight-line method. The machinery and office equipment are depreciated using the straight-line method and having a useful life of 15 vears. 1. Restate the Income Statement 2. Prepare a monetary gain or loss schedule for Abdullah \& Sons Corporation as at 31 December 2019 by using historical cost constant value model. (Must write factor applied for adjustments) \begin{tabular}{:l|c|c|c|c|} Use of Cash & Historical Cost Accounting (Thousand SAR) & Price level adjustment & Historical Cost -Constant Value (Thousand SAR) \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline Beginning - Cash & 100,000 & \\ \hline Purchase of factory & 80,000 & \\ \hline Purchase of Machinery & 6,000 & \\ \hline \end{tabular} Sales revenue Operating Expenses Dividend Revenue Cash ending Balance Monetary Gain / (Loss)
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