• or cheating will result zero grade in this assignment.

Q1. Differentiate Cash basis vs. accrual basis of accounting.

Q2. Presented below are selected accounts of Aramco Company at December 31, 2010.
FinishedGoods	SAR 52,000	Cost of GoodsSold	SAR 2,100,000
Revenue Received in Advance	90,000	Notes Receivable	40,000
Equipment	253,000	AccountsReceivable	161,000
Work-in-Process	34,000	RawMaterials	187,000
Cash	42,000	Supplies Expense	60,000
Trading Securities	29,000	Allowance for DoubtfulAccounts	12,000
Customer Advances	36,000	Licenses	18,000
Cash Restricted for Plant Expansion	50,000	Share Premium - Ordinary	88,000
Treasury Stock	22,000

a. The notes receivables are due April 30, 2012, with interes treceivable every April 30. The notes bear 6% interest (Hint: Accrue interest due on December 31, 2010.)

Instructions:

Prepare the currentassets section of AramisCompanysDecember 31, 2010, statement of financial position, with appropriate disclosures.

Q3. Record the following transactions of Reed Co. in the desiredmanner and give the adjusting entry on December 31, 2010. (Two entries for each part.)

1. An insurancepolicy for twoyearswasacquired on April 1, 2010 for $8,000.

2. Rent of $12,000 for six months for a portion of the building was received on November 1, 2010.

Q4. Prepare a statement of cash flows of Stanislaus Co. for the year ending December 31, 2012

December 31

2011 2012

Land 58,800 21,000

Equipment................................................ 504,000 789,600

Inventory................................................. 168,000 201,600

Accounts receivable (net)........................ 84,000 151,200

Cash......................................................... 42,000 63,000

TOTAL........................................ 856,800 1,226,400

Share capitalordinary............................. 420,000 487,200

Retained earnings.................................... 67,200 205,800

Notes payable - Long-term...................... 168,000 302,400

Notes payable - Short-term...................... 67,200 29,400

Accounts payable..................................... 50,400 86,000

Accumulated depreciation....................... 84,000 115,600

TOTAL........................................ 856,800 1,226,400

Additional data for 2012:

1. Net income was 235,200.

2. Depreciation was 31,600.

3. Land was sold at its original cost.

4. Dividends of 96,600 were paid.

5. Equipment was purchased for 84,000 cash.

6. A long-term note for 201,600 was used to pay for an equipment purchase.

7. Share capitalordinary was issued to pay a 67,200 long-term note payable.

FINANCIAL ACCOUNTING ACCT 201 ASSIGNMENT 2 Last Date for Submission 18th March 2017 Each Question carries 2.5 marks. You are required to work in this assignment individually. Any suspicious activities or cheating will result zero grade in this assignment. Q1. Differentiate Cash basis vs. accrual basis of accounting. Q2. Presented below are selected accounts of Aramco Company at December 31, 2010. FinishedGoods SAR 52,000 Cost of GoodsSold SAR 2,100,000 Revenue Received in Advance 90,000 Notes Receivable 40,000 Equipment 253,000 AccountsReceivable 161,000 Work-in-Process 34,000 RawMaterials 187,000 Cash 42,000 Supplies Expense 60,000 Allowance for Trading Securities 29,000 DoubtfulAccounts 12,000 Customer Advances 36,000 Licenses 18,000 Cash Restricted for Plant Expansion 50,000 Share Premium - Ordinary 88,000 Treasury Stock 22,000 a. The notes receivables are due April 30, 2012, with interes treceivable every April 30. The notes bear 6% interest (Hint: Accrue interest due on December 31, 2010.) Instructions: Prepare the currentassets section of AramisCompany'sDecember 31, 2010, statement of financial position, with appropriate disclosures. Q3. Record the following transactions of Reed Co. in the desiredmanner and give the adjusting entry on December 31, 2010. (Two entries for each part.) 1. An insurancepolicy for twoyearswasacquired on April 1, 2010 for $8,000. 2. Rent of $12,000 for six months for a portion of the building was received on November 1, 2010. 1 Q4. Prepare a statement of cash flows of Stanislaus Co. for the year ending December 31, 2012 December 31 2011 Land 58,800 2012 21,000 Equipment................................................ 504,000 789,600 Inventory.................................................. 168,000 201,600 Accounts receivable (net)........................ 84,000 151,200 Cash.......................................................... 42,000 63,000 TOTAL.........................................856,800 1,226,400 Share capital-ordinary.............................420,000 487,200 Retained earnings..................................... 67,200 205,800 Notes payable - Long-term...................... 168,000 302,400 Notes payable - Short-term...................... 67,200 29,400 Accounts payable..................................... 50,400 86,000 Accumulated depreciation....................... 84,000 115,600 TOTAL.........................................856,800 1,226,400 Additional data for 2012: 1. Net income was 235,200. 2. Depreciation was 31,600. 3. Land was sold at its original cost. 4. Dividends of 96,600 were paid. 5. Equipment was purchased for 84,000 cash. 6. A long-term note for 201,600 was used to pay for an equipment purchase. 7. Share capital-ordinary was issued to pay a 67,200 long-term note payable. 2