Taxpayer has a piece of land recorded at balance sheet a cost of SAR 100,000 and during the tax year, he incurred expenses of SAR 20,000 to improve the land. What is the tax treatment for expenses incurred?

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DISCUSSION QUESTION

Assignment Question(s):  (15.0 Marks) Each Questions Carries 1.5 Marks)

A resident capital company has a tax base of SAR 1,000,000 and Saudi shares in its ownership is 30%.

  • Required: What is the tax due?

Taxpayer has a piece of land recorded at balance sheet a cost of SAR 100,000 and during the tax year, he incurred expenses of SAR 20,000 to improve the land.

  • Required: What is the tax treatment for expenses incurred?

Taxpayer has an equipment with a book value of SAR 100,000 and during the tax year, he incurred expenses of SAR 20,000 to improve the land.

  • Required: What is the tax treatment for expenses incurred?

Taxpayer purchased an equipment of SAR 100,000 to be used in the research and development activities.

  • Required: What is the deductible expenses?

 

Bank ALBELAD recorded the following  journal entry in 2021:

Dr.  Bad debt expenses SAR 5,000,000

Cr.   Allowance for doubtful accounts 5,000,000

Required: What is the tax treatment for those provisions?

 

Taxpayer working as a manufacturing company recorded  the following  journal entry in 2021:

Dr.  Bad debt expenses SAR 100,000

Cr.   Allowance for doubtful accounts   100,000

Required: What is the tax treatment for those provisions?

 

Non-resident person received income from Saudi company against services provided in the kingdom.

Required: Is non- resident person subject to income tax?  If yes what is the name of the tax and its tax rate.

 

When Saudi persons are subject to income tax According to the income tax law in the kingdom?

 

Taxpayer disposed of a non-depreciable asset with a cost base of SAR 100,000 by gift.

Required: What is the tax treatment for the assets disposed of?

 

Taxpayer has written off accounts receivable with book value of SAR 50,000 not previously taxable.

Required: Is this bad debt deductible expense?

 

 

Dino’s After School returned 8 severely damaged books to the publisher. The total value of the returned merchandise was $94. Use a journal entry to record this transaction, using the perpetual inventory system.

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Assignment 1: Journal Entry Problem Set

Journal entries are a critical step to create accounting records. Learn more about journal entries by completing an advanced accounting problem set. Review the steps to complete before submitting this assignment and understand how to submit the assignment.

About this Assignment
In accounting systems, business transactions are first recorded in a journal. A journal entry that is recorded in a company’s general journal will consist of the date, the amount/s and account/s that will be debited, the amount/s and account/s that will be credited, and a brief description/memo. This assignment will measure your understanding of the double entry system in accounting and will focus on the content of chapters 1-3 in the study.com course and the corresponding learning outcomes. Before beginning the assignment, please read the rubrics carefully to understand the expectations and how your work will be graded. Please note that you are required to utilize correct formatting, including headings and sub-headings, and show how calculations are done.

Problem Set

Problem # 1: Dino’s After School purchased 50 textbooks from the local publisher, about career readiness, to resell to clients. The total cost of the transaction, including shipping and handling, was$552. The textbooks were purchased on account. Use a journal entry to record this transaction, using the perpetual inventory system.

Problem # 2: Dino’s After School returned 8 severely damaged books to the publisher. The total value of the returned merchandise was $94. Use a journal entry to record this transaction, using the perpetual inventory system.

Problem # 3: Examine the invoice below. If Dino’s After School paid the invoice of 5/30/17 on6/6/17, record the journal entry that would be made for the payment of the invoice. Explain in 100-150 words the effect of discounts on merchandise inventory.
Invoice Date: 5/30/17
Terms: 2/10, n/30
Purchase of 25 textbooks at $11. 25 each $281.25
Shipping and Handling $12.50
Total Due: $293.75

Problem # 4: Dino’s After School sold 3 books to Sandy Mason on account for a total of $60. The total cost of the books sold was $34. Record the journal entries that would be made for this transaction using a perpetual inventory system. Why are two journal entries required to record the sale of merchandise in a perpetual inventory system? (100-150 words)

Problem #5: Use the information from (D) above. Sandy Mason returned 1 book. Record the journal entries for this transaction in a perpetual inventory system. Explain why two journal entries are required to record a sales return. (100-150 words)

Shaybah has an ambitious plan to invest 100 billion SAR in the next 30 years. Explain how the company might fund such an ambitious investment plan. You are required to evaluate the benefits and drawbacks of equity finance and debt finance from the company’s perspective.

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ASSIGNMENT

Answer all the Questions. (Word Limit-2000-2500 words)

Shaybah Plc

All values in SAR Millions

Income statement for the year ended 31st Dec 2022

2020 2021 2022

  • Turnover 786 841 900
  • Cost of Sales 503 563 630
  • Gross Profit 283 278 270
  • Admin Costs 109 122 137
  • Net Profit 174 156 133
  • Dividends 50 80 80
  • Retained Earnings 124 76 53
  • Statement of Financial Position as at 31st Dec 2022
  • 2020 2021 2022
  • Non-Current Assets 477 832 890
  • Current Assets 262 281 300
  • Total Assets 739 1,113 1,190
  • Current Liabilities 154 192 93
  • Non-Current Liabilities 100 412 412
  • Ordinary Shares 350 350 350
  • Retained Profits 135 259 335
  • 739 1,113 1,190
  • Sector average ratios:
  • Return on capital employed 19%
  • Net profit margin 20%
  • Current ratio 1.6 Times
  • Debt/equity ratio (book value basis) 48%
  • Return on equity 15%

Question 1

Required:

  • 1.1 Calculate the following ratios for Madeira Plc:
  • Gross Profit Margin
  • Net Profit Margin
  • Net Asset Turnover
  • Receivable Days
  • Payable Days
  • Return on Capital Employed
  • Debt / Equity Ratio
  • Return on Equity (12 marks)

1.2 Comment on the financial performance of Shaybah Plc between the years 2020 and 2022 using the ratios above and any other financial measure you feel appropriate. (10 marks)

1.3 In 2020 the share price of Shaybah was 20 SAR per share. Today the share price is 21 SAR per share. Critically evaluate if you believe the directors of Shaybah Plc are maximizing the wealth of shareholders. What other goals might the company consider. (8 marks)

Question 2

2.1 Shaybah has an ambitious plan to invest 100 billion SAR in the next 30 years. Explain how the company might fund such an ambitious investment plan. You are required to evaluate the benefits and drawbacks of equity finance and debt finance from the company’s perspective.  (10 marks)

2.2 Summarize the (theoretical) costs of each type of finance available to the company when funding its investment appraisal in the future. What are the relative costs of retained earnings compared with raising new finance via the debt and equity financial markets.  (10 marks)

Question 3

ZebraToon plc is looking to take on a new investment. The company will evaluate two mutually exclusive projects, whose details are given below. The company’s cost of capital is 12%. SAR Millions Project A Project B Initial Investment (150) (152)

Year 1 40 80

Year 2 50 60

Year 3 60 50

Year 4 60 40

Year 5 85 30

  1. Calculate the Payback period (4 marks)
  2. Calculate the Net Present Value (NPV) of both projects (6 marks)
  3. Calculate the Internal Rate of Return (IRR) of both projects (6 marks)
  4. Critically discuss the merits of each investment appraisal method, then discuss the result of the evaluations you have made of the two projects and advise the company which project should be undertaken (9 marks)

Question 4

4.1 The fundamentals of finance are said to be the concept of ‘Risk and Return’ and secondly the ‘Time Value of Money’. Critically evaluate how investment appraisal techniques can take account of both fundamental theories to aid decision making.  (10 marks)

4.2 Summarize the benefits of Leasing to the company when obtaining new fixed assets.  (5 marks

 

What information is relevant for decision-making? Differentiate between relevant and irrelevant information for decision-making.

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Decision-making

Q1. What information is relevant for decision-making? Differentiate between relevant and irrelevant information for decision-making. Support your answer by explaining the information in the context of an organization.

(3 Marks)

Note: Your answer must include suitable examples of relevant and irrelevant information for decision-making. (Week 2, Chapter 1):

 

Provide a good illustration of how businesses should adhere to accounting principles and assumptions, as discussed on slide 16 of Chapter 1.

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ASSIGNMENT QUESTIONS

Instructions – READ THEM CAREFULLY

  • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
  • Assignments submitted through email will not be accepted.
  • Students are advised to make their work clear and well presented; marks may be reduced for poor presentation. This includes filling your information on the cover page.
  • Students must mention question number clearly in their answer.
  • Late submission will NOT be accepted.
  • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
  • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
  • Submissions without this cover page will NOT be accepted.

Assignment Question(s):    (Marks15)

Q1. Provide a good illustration of how businesses should adhere to accounting principles and assumptions, as discussed on slide 16 of Chapter 1.   (5marks)

Use this example as a guide for your answer.

According to the cost accounting principle, if a firm purchases land for SR400,000 but an outside appraiser values it at SR600,000, the land should still be recorded in the books at SR400,000.

Q2. Provide an example of each title here and then record the journal entries. Following the first given answer.   (5marks)

1-Providing consulting services receiving cash.

Given answer:

ABC company provides consulting services and receives 1,000 cash.

Journal entry:

Dr.Cash. 1,000

Cr.Consulting Revenue. 1,000

2-Investment by an owner.

3-Purchasing equipment for cash.

4-Purchasing supplies on credit.

5-Borrowing money from a bank.

6-Paying investors their shares of dividends.

Q3. On 31/12/2020, the following balances appeared in the trial balance of Al Ghanim Company   (5marks)

Al Ghanim Co.

Partial Trial Balance

December 31
Prepaid insurance 1,500  
Supplies 1,000  
Unearned service revenue   1,500
Equipment 50,000  

 

Additional information:

  1. An insurance policy examination showed SR1,000 of expired insurance
  2. An inventory count showed SR200 of unused shop supplies still available
  3. Depreciation expense on shop equipment, SR10,000
  4. SR800 of the Unearned service account balance was earned by year-end.

 

Required :

  1. Make the necessary adjusting entries.
  2. Show the impact of these adjustments on the income statement and the balance sheet statement.

 

 

 

 

 

Explain the uses and limitations of a statement of financial position. Explain the pronouncements issued by IASB. From the information given, prepare a statement of retained earnings.

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DISCUSSION ESSAY

Q1– Explain the uses and limitations of a statement of financial position (3 Marks).

Q2- Explain the pronouncements issued by IASB. (3Marks).

Q3. From the information given, prepare a statement of retained earnings. . (4Marks).

ABC corporation had an initial investment of SAR50,000 cash and other information was as follows:

Accounts payable SAR12,000 Office furnishings SAR40,000
Accounts receivable 23,000 Dividends 6,000
Cash 17,200 Rent expense 3,600
Fees earned 30,000 Salaries expense 6,200
Notes payable 4,250 Telephone expense 250

 

Q4. From the following information of XYZ Company, prepare a multi-step income statement For the Year Ended December 31, 2021 (5 Marks).

 

Sales                           $137,460

Sales Returns   $2,060

Sales Discounts       $5,190

Cost of Goods Sold $62,990

Freight-Out           $6,150

Advertising Expense   $5,790

Sales Commissions Expense  $3,470

Office Salaries Expense      $18,510

Office Rent Expense   $14,000

Office Supplies Expense     $5,330

Gains on Sale Equipment   $2,430

Loss on Sales of Investments $1,640

Interest Expense     $930

 

What financial challenges or opportunities can you identify? How do you plan to address them? What kinds of questions would you ask our finance director to orient yourself as a new executive director?

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Consildated Statement Review & Analysis

Review the attached Consolidated balance sheet and answer the following questions as if you were the incoming Executive Director.

****Visit the Company Website for more insight to answer question #2***

1. From these reports, what key information would you want to ensure is communicated to and discussed with the following constituents,
a. The board and the Finance Committee?
b. The internal leadership team?
c. Staff during an all-staff meeting?

2. From these reports, where do you plan to focus initially? Why?

3. What financial challenges or opportunities can you identify? How do you plan to address them?

4. What kinds of questions would you ask our finance director to orient yourself as a new executive director?

***Assertions should be supported by data or scholarly journals (accounting, Non-profit oriented)

Explain Major Difference between job and process costing. Determine key amounts related to a job order costing system.

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DISCUSSION ESSAY

2.2 Action Required:

Use the following link to access the material for this week

Chapter 2

Videos

Watch the following video(s), which you can access in the Weekly Media object or by clicking on the link(s) below:

2.3 Test your Knowledge (Question):

  • Explain Major Difference between job and process costing
  • Determine key amounts related to a job order costing system.

 

3.2 Action Required:

Read the following to prepare for this week:

Chapter 3

3.3 Test your Knowledge (Question):

  1. Use a numerical example to Compute key amounts related to an activity-based costing system.
  2. Explain product costs under activity-based costing and conventional costing methods.

 

Differentiate between conventional insurance and takaful system focusing on the three elements that makes the conventional insurance (haram) prohibited under Islam laws.

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DISCUSSION QUESTION

Course Name: Insurance Accounting Student’s Name:
Course Code: ACCT 424 Student’s ID Number:
Semester: II CRN:
Academic Year: 1444/1445 H

 

For Instructor’s Use only

Instructor’s Name: Habiba Moabber
Students’ Grade:  / 15 Level of Marks: High/Middle/Low

Instructions – READ THEM CAREFULLY

  •       The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
  •       Assignments submitted through email will not be accepted.
  •       Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
  •       Students must mention question number clearly in their answer.
  •       Late submission will NOT be accepted.
  •       Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
  •       All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
  •       Submissions without this cover page will NOT be accepted.

Assignment Question(s):    

Q1. Visit the following website for SAMA (https://www.sama.gov.sa/en-US/FAQs/Pages/InsuranceFAQs.aspx). Summarize its content in your own words and compare it to Insurance Laws you studied the course. (Marks 8)

 

Q2. Differentiate between conventional insurance and takaful system focusing on the three elements that makes the conventional insurance (haram) prohibited under Islam laws. (7 Marks)

 

Takaful Insurance Conventional Insurance
   
   
   
   
   
   
   
   
   

 

Classify the costs of this new product as direct materials, direct labor, manufacturing overhead, selling, or administrative. Classify the costs listed as either product costs or period costs.

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ACC202 Managerial Accounting SLP Module 1

INTRODUCTION TO MANAGERIAL ACCOUNTING

Everything Umbrella Inc. is considering producing a new type of umbrella. This new pocket-sized umbrella would fit into a coat pocket or purse.

Prepare a table with three columns to include the following information:

  • Classify the costs of this new product as direct materials, direct labor, manufacturing overhead, selling, or administrative.
  • Classify the costs listed as either product costs or period costs.

List of expenses incurred by Everything Umbrella Inc.

  1. Cost of advertising the product.
  2. Fabric used to make the umbrellas.
  3. Maintenance of cutting machines used to cut the umbrella fabric so it will fit the umbrella frame.
  4. Wages of workers who assemble the product.
  5. President’s salary.
  6. The salary of the supervisor of the people who assemble the product.
  7. Wages of the product tester who stands in a shower to make sure the umbrellas do not leak.
  8. Cost of market research survey.
  9. Salary of the company’s sales managers.
  10. Depreciation of administrative office building.

SLP Assignment Expectations

The table should be easy to read and nicely formatted with adequate explanations. Here is an example of the first two lines of a table.

Expense item DM/DL/OH/Sell./Adm. Product/Period
Advertising Selling expense Period cost

The use of Excel is required. Here are a couple of resources for using Excel if you have limited experience with this tool.

Both content and presentation will be evaluated.