Question

Q.1 The following information was retrieved from NOOR COMPANY books:

NOOR COMPANY

Comparative Balance Sheet

December 31, 2018 and 2017

	2018	2017
Assets
Current assets	SAR       440	SAR     280
Plant assets	675	520
Total assets	SAR    1,115	SAR     800
Liabilities and stockholders' equity
Current liabilities	SAR       280	SAR     120
Long-term debt	250	160
Common stock	325	320
Retained earnings	260	200
Total liabilities and stockholders' equity	SAR    1,115	SAR     800

Instructions: Using horizontal analysis, calculate the percentage change for each balance sheet item using 2017 as a base year.

ANS:     

Q.2 From following calendar-year information prepare Abrar Company's statement of cash flows using the direct method:

Cash paid to purchase machinery	SAR 124,000
Cash paid for merchandise inventory	220,000
Cash paid for operating expenses	280,000
Cash paid for interest	4,000
Cash received for interest	10,000
Cash proceeds from sale of land	100,000
Cash balance at beginning of year	15,000
Cash balance at end of year	77,000
Cash borrowed on a short-term note	25,000
Cash dividends paid	24,000
Cash received from stock issuance	57,000
Cash collections from customers	522,000

Answer:

Q.3 On October 31, 2017, Naif Company sells a truck that originally cost 140,000 SAR for 95,000 SAR in cash. The truck was placed in service on January 1, 2012. It was depreciated using the straight-line method with an estimated salvage value of 28,000 SAR and a useful life of 10 years. Record all the transactions?

Answer:

Q.4 On July 19, 2018, Omar Co. purchased a machine for 260,000 SAR from Saudi Machine Company (SMC). Omar gave SMC 7% note due in 120 days in payment for the machine.

1. What is the maturity date of the note?
2. How much interest will Omar pay to SMC on this note?
3. Record the note?
4. On October 16, 2018, Omar informs us that the company is unable to pay the note or interest?
   Answer:
   
   Q.5 K ltd issue 10,000 share of 10 SAR par value common stock, pass the necessary journal entries in the books of company if shares are issued at.                                                                    

1. At Par value
2. At 10% Discount
3. At 10% Premium
   
   Answer.                                         
   Journal entry in the books of K ltd Company

Answer 1