Assignment Question(s): (10 Marks)

Q1-

On your own words, describe the methods that companies can implement to depreciate plant assets. (3 Marks).

Q2-

On July 31,2021, a company declared a cash dividend of SR0.25 per common share to the shareholders of record on August 15. The cash dividend will be paid on August 25. This company has 500,000 shares authorized and 100,000 shares outstanding. Prepare the journal entries required on July 31, August 15 and August 25 (3 Marks).

Q3-

On June 1, 2021, ABC Company signed a SR25,000, 120-day, 6% note payable to cover its past due account payable. a. What is the total amount of interest to be paid on this note? b. Prepare ABC Company's general journal entry to record the issuance of the note payable c. Prepare ABC Company's general journal entry to record the payment of the note on September 29, 2021 (3 marks).

Q4-

On your own words, describe the differences between current and long-term liabilities. Provide an example of each type. (1 Mark).