1. Transactions and valuation methods are treated the same way from year to year, or period to period. Users of accounts can, therefore, make more meaningful comparisons of financial performance from year to year. Where accounting policies are changed, companies are required to disclose this fact and explain the impact of any change.

Base up on the scenario: Identify which type of principles and justify your answer

2. Mex Cars is a motor vehicle distributor that prepares its accounts on the calendar-year basis. Ten cars are purchased during 2020 for OMR4,500 each and sold for OMR6,000 each.

You are required Calculate profit by matching revenues with expenditures

3. Ms. Kareema, a shoe-making company, recruited a new CEO (Mr. Kareem) on January 10th, 2008.

The new CEO worked days and nights to show the board members his abilities. Finally, he made a deal with a British company (company A) to sell 1,000,000 shoes at a price of OMR100 per unit. After six months of transportation and customs clearance, Ms. Kareema completed the delivery on October. Company A agreed to pay Ms, Kareema OMR100 million on January 2009.

1. Base up on the scenario in the cash basis accounting, Ms. Kareemas revenue in 2008, how much justify your answer
2. Base up on the scenario However, the accrual basis accounting, Ms. kareemas revenue in 2008, how much justify your answer

4. On Jan. 1 st , 2008, Mr. Khaleel has received an advance payment (OMR30,000) of 3 years rent (until Dec. 31 st , 2010). Annual rent is OMR10,000.

In the example above, Mr. Khaleel received a cash payment of OMR30,000 on Jan. 1 st , 2008.

Identify the type of journal entry that Mr. khaleel recorded in the accounting book.

Use the Following information for the Question Numbers 5 to 10.

Mr. Najeeb opened the accounting analyst services in January 2020. He plans to prepare the monthly financial statement dated 31 January 2020. During this month period he completed the following transaction. January 1. Mr. Najeeb invested cash 40,000, motor van value OMR 5,000

January 2. Paid 6000 cash for the rent of office for the next four months. January 3. Purchased other machinery tools OMR 900 on credit.

January 4. Will be appointing a helper in the next month OMR 100.

January 8. Completed work for a client and collected cash OMR 700 January 10. Perform services for a client and sent a bill OMR 500 to be paid after. January 12. Purchased supplies OMR 7,000 in cash.

January 14. Mr. Najeeb has booked machinery for OMR 900 and the expected delivery of machinery will be in the month of March.

January 15. Received cash OMR 6000 from a client for the service to be provided for 3 months.

January 17. Pay home expenses from his personal fund OMR 250 January 18. Collected OMR 100 on the amount owed by the client.

January 22. Purchased computer and returned it back on the same day as it was defective OMR 290 January 25. Paid cash OMR 550 for liability on the machinery tools January 28. Owner withdrew OMR. 400 cash for personal use. January 30. Completed work for another client OMR. 1000 but paid only for 50% of the amount. The remaining agree to pay later.

January 31. Paid wages of helper. OMR 850.

January 31. Planned to purchase additional supplies of OMR 510.

January 31. Received utility bills OMR 400.

From the above transaction you are required to prepare:

5. Analyze the transaction by using accounting equation.
6. Prepare the Journal entries for the month of January.
7. Post the entries and calculate the balances.
8. Use the balances to prepare the unadjusted trial Balance.
9. After completing the Unadjusted trial balance use the below information to prepare the Adjusted Trial Balance.

Additional information

1. Rent expense for the month OMR1500
2. Office supplies at the end of the month 2200.
3. Unearned revenue OMR 4000. At the end of the month.
4. The motor van has useful life 5 years and residual value OMR 1000
5. The earned revenue not recorded at the end of the month OMR 1000.

Use the adjusted Trial Balance to prepare Income statement, statement of owners equity and statement of financial Position.