Chapter 4: Payroll

1. Sohar Company pays employees base on the following table. Riyas produced 560 units in a week. Calculate his weekly gross pay.

Units produced	Rate per unit
0 - 100	0.100
101-200	0.200
201-300	0.300
Over 300	0.400

1. Amerat Company pays employees base on the following table. Mark's sales total OMR 3,900. Calculate his gross pay.

Sales	Commission Rate
OMR 0 - OMR 500	5%
OMR 501 - OMR 1,000	6%
OMR 1,001 - OMR 2,000	7%
Over OMR 2,000	8%

1. Hamad worked for 65 hours in one week for Tiwi Company. Hamad earns OMR 4 per hour, for regular 7 hours x 6 days schedule.
2. Compute Hamad's gross pay assuming overtime is at time-and-a-half. (Hourly Rate plus Overtime)
3. Hamad produced 300 units. The manager offers him to pay OMR 1 per unit. Compute his gross pay. (Straight Piece Rate)
4. Which method Hamad prefer? Explain.

Chapter 5: Depreciation

1. An equipment is bought for OMR 5,000 which is expected to be useful for 5 years. The company spent OMR 200 for installation, OMR 20 for transportation and OMR 10 for testing. The company also expects that at the end of its useful life, the equipment can be sold for OMR 500, its salvage value.
   1. Compute Depreciable Cost
   2. Compute Annual Depreciation
   3. Compute the Book Value at the End of Year 1
   4. Compute the Book Value at the End of Year 2

1. On 1st of July 2019, Tayin Company purchased a machinery that costs OMR 2,000 with an estimated salvage value of OMR 400. It is expected that the asset will be useful for 4 years. Assume that the company use straight line method for calculating depreciation,

a. Calculate the depreciation expense for printing machinery during 2019

b. Calculate the depreciation expense for printing machinery during 2020

c. Compute the book value at the end of year 2020.

1. A machine is bought for OMR 10,000 which is expected to be useful for 3 years. The estimated salvage value is OMR 500.
2. Compute the WDV Rate
3. Complete the following table,

Year	BV Beg.	Depreciation	Accumulated Depreciation	BV End
0	-	-	-	19,000
1
2
3

Chapter 6: Installment and Mortgage

1. Hassan bought a car with a cash price of OMR 4,000. He made a down payment of OMR 500 and paid OMR 70 monthly for 5 years (60 months). Compute the following,
   1. Amount financed
   2. Total finance charge
   3. Deferred payment price
   4. Annual percentage rate

1. Complete the following table

No.	Purchase price of the product	Down Payment	Amount financed	Number of monthly payments	Amount of monthly payments	Total monthly payments	Total Finance Charge
A	1,500	300		60	25
B	20,000		18,000	48		20,160
C		5,000	90,000		1400	100,800

1. If OMR 2,000 is financed for 10 years at 8% simple interest rate.

a. Calculate the total interest

b. Calculate the total amount paid

1. Hussein deposited OMR 3,000 in a savings account at Bank Nizwa.
   1. What is the balance in Hussein's account after 4 years if the bank pays 10 % interest compounded quarterly?
   2. What is the balance in Hussein's account after 4 years if the bank pays at 10% simple interest?
   3. If you are Hussein, which method would you prefer? Explain

Please solve all of the questions. The solution must be computer typed