Professional Documents
Culture Documents
Tunisia Review Policy
Tunisia Review Policy
Tunisia Review Policy
CHECKLIST
1. Textbook (one)
2. Course Outline
3. Assignment No. 1, 2
4. Assignment Forms (2 sets)
In this packet, if you find anything missing out of the above mentioned material, please
contact at the address given below:
Mahmood - ul – Hasan
Course Coordinator
ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD
(Department of Business Administration)
WARNING
1. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING
THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD
OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2. SUBMITTING ASSIGNMENT(S) BORROWED OR STOLEN FROM
OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN
“AIOU PLAGIARISM POLICY”.
Course: Financial Accounting (8501) Semester: Autumn 2018
Level: MBA (3½ Years & 2½ Years) Total Marks: 100
Pass Marks: 50
ASSIGNMENT No. 1
Q. 1 Ken Hensley Enterprise, Inc is a small recording studio in st.louis.Rock bands use
the studio to mix the mix-quality demo recordings distributed to talent agents. New
clients are required to pay in advance for studio services. Bands with established
credit are billed for studio services at the end of each month. Adjusting entries are
performed on am monthly basis. An unadjusted trial balance dated December.31,
2005,follows (Bear in mind that adjusting entries already have been made for the
first eleven months of 2005, but not for December. (20)
2
Insurance expense 2,680
Depreciation expense: recording equipment 16,500
Studio rent expense 21,000
Interest expense 840
Utilities expense 2,350
Income taxes expense 17,900
$307,149 $307,140
Other data:
1) Records show that $4,400 in studio revenue had not yet been billed or
recorded as of December 31.
2) Studio supplies on hand at December 31 amount to $6,900.
3) On August 1, 2005 the studio purchased a six month insurance policy for
$1,500.The entire premium as initially debited to unexpired insurance.
4) The studio is located in a rented building. On November 1, 2005 the studio
paid $6,000 rent in advance for November, December and January. The entire
amount was debited to prepaid studio rent.
5) The useful life of the studios recording equipment is estimated to be a five
years ( or 60 months) The straight-line method of depreciation is used.
6) On May 1, 2005, the studio borrowed $ 16,000 by signing a 12-month, 9
percent note payable to first federal Bank of St.Louis. The entire $16,000
plus 12 months interest is due in full on April 30, 2006.
7) Records show that $3,600 of cash receipts originally recorded as unearned
studio Revenue had been earned as of December 31.
8) Salaries earned by recording to technicians that remain unpaid at December
31 amount to $ 540.
9) The studios accountant estimated that income taxes expense for the entire
year ended December 31, 2005, is $19,600, (Note that $17,900 of this
amount has already been recorded.
You are required to prepare Income Statement and Balance Sheet.
3
31, prior to the adjusting entry process. The straight line method of
depreciation is used.
4. Management signed an agreement to let Boy Scout troop 538 of Lewisburg,
Pennsylvania use the campground in June next year. The agreement specifies
that the Boys Scouts will pay a daily rate of $12 per campsite. With a clause
providing a minimum total charge of $1,475
5. Salaries earned by campground employees that have not yet been paid
amount to 1,250.
6. As of December 31, enchanted forest has earned $2,400 of revenue from
current campers who will not be billed until they check out.
7. Several lakefront campsites are currently being leased on a long-term basis
by a group of senior citizen. Six month rent of $5,400 was collected in
advance and credited to unearned camper revenue on October 1 of the
current year.
8. A bus to carry campers to and from town and the airport had been rented the
first week of December at a daily rate of $40. At December 31 ,no rented
payment has been made, although the campground has had use of the bus for
25 days.
9. Unrecorded Income taxes Expense accrued in December amounts to $8,400.
This amount will not be paid until January 15.
Q. 3 Sky probe sells state of the art telescope to individual and organizations interested
in studying the solar system. At December 31 last year, the company's inventory
amounted $250,000. During the first week of January this year, the company made
only one purchase and one sale. These transactions were as follows: (20)
Jan 2: Sold one telescope costing $90,000to central state university for cash $117,000.
Jan 5: Purchased merchandise on amount from lunar Optics, $50,000. Terms, net
30 days
1. Prepare a journal report to record these transactions assuming that sky Probe
uses the perpetual inventory systems. Use separate entries to record the sales
revenue and the cost of goods sold for the sale on January 2.
2. Compute the balance of the inventory account on January 7.
3. Prepare journal entries to record the two transactions, assuming that Sky
probe uses the periodic inventory system.
4. Compute the cost of goods sold for the first week of January assuming use of a
periodic inventory system. Use your answer to part b as the ending inventory.
5. Which inventory system do you believe that a company such as a Sky probe
would probably use? Explain your reasoning.
4
GUIDELINES FOR ASSIGNMENT # 1
The student should look upon the assignments as a test of knowledge, management skills,
and communication skills. When you write an assignment answer, you are indicating your
knowledge to the teacher:
Your level of understanding of the subject;
How clearly you think;
How well you can reflect on your knowledge & experience;
How well you can use your knowledge in solving problems, explaining situations,
and describing organizations and management;
How professional you are, and how much care and attention you give to what you do.
To answer a question effectively, address the question directly, bring important related
issues into the discussion, refer to sources, and indicate how principles from the course
materials apply. The student must also be able to identify important problems and
implications arising from the answer.
For citing references, writing bibliographies, and formatting the assignment, APA format
should be followed.
ASSIGNMENT No. 2
Course: Financial Accounting (8501) Semester: Autumn 2018
Level: MBA (3½ Years & 2½ Years) Total Marks: 100
Pass Marks: 50
5
The report should follow the following format:
1. Title page
2. Acknowledgements
3. An abstract (one page summary of the paper)
4. Table of contents
5. Introduction to the issue (brief history & significance of issue assigned)
6. Practical study of the organization (with respect to the issue)
7. Data collection methods
8. SWOT analysis (strengths, weaknesses, opportunities & threats) relevant to the
issue assigned
9. Conclusion (one page brief covering important aspects of your report)
10. Recommendations (specific recommendations relevant to issue assigned)
11. References (as per APA format)
12. Annexes (if any)
WORKSHOPS
The workshop presentations provide students opportunity to express their communication
skills, knowledge & understanding of concepts learned during practical study assigned in
assignment # 2.
You should use transparencies and any other material for effective presentation. The
transparencies are not the presentation, but only a tool; the presentation is the
combination of the transparencies and your speech. Workshop presentation transparencies
should only be in typed format.
6
GUIDELINES FOR WORKSHOP PRESENTATION:
Make eye contact and react to the audience. Don't read from the transparencies or from
report, and don't look too much at the transparencies (occasional glances are acceptable to
help in recalling the topic to cover).
A 15-minute presentation can be practiced several times in advance, so do that until you
are confident enough. Some people also use a mirror when rehearsing as a substitute for
an audience.
8
3.7 Work Sheet for Merchandising Concern
3.8 Adjusting Entries
3.9 Closing Entries
3.10 Cost of Goods Sold Statement, Income Statement and Balance Sheet
Unit-7: Partnerships
7.1 Partnerships, Advantages and Disadvantages
7.2 Partnership Deed
7.3 Accounts of Partnerships
7.4 Closing the Partnership Accounts at Year-end
7.5 Partnership Profits and Income Taxes
7.6 Dividing Partnership Net Income
7.7 Dissolution of Partnership
7.8 Liquidation of Partnership
Unit-8: Corporations
8.1. Corporation, Advantages and Disadvantages
8.2 Stockholders’ Equity and Dividends.
8.3. Rights of Common Stockholders and Preferred Stockholders
8.4. Issuance, Face Value, Book Value and Market Value Of Stocks
8.5 Donated Capital
8.6. Changes in Accounting Policies
8.8. Earning Per Share (EPS)
8.9. Stock Split and Repurchase
8.10. Statement of Stockholders Equity
8.11. Statement of Retained Earnings
8.12. Statutory Books
8.13. Financial Statements
10
Unit-9: Special Type of Liabilities
9.1. Bonds
9.2. Bond Interest
9.3. Accounting for Bonds Payable
9.3.1 Issue at Par
9.3.2 Discount
9.3.3 Premium
9.4. Year-end Adjustments for Bond Interest Expense
9.5. Bond Sinking Fund
9.6. Investment in Corporate Securities
9.7. Short-term and Long-term Investment
9.8. Investment in Marketable Securities
9.9. Accounting for Marketable Securities
9.10. Sale of Investment
9.11 Accounts of Holding Companies and Non Profit Accounting
9.12. Accounting for Parent, Subsidiary and Affiliates
9.13. Recording Inter Company Transactions
9.14. Methods of Accounting for Consolidations
9.14.1 Consolidated Balance Sheet
9.14.2 Consolidated Income Statements
9.14.3 Other Consolidated Financial Statements
0.15 Accounting of Payroll
Recommended Books:
Williams, J. R., Haka, S. F., Bettner, M. S., Haka, S., & Carcello, J. (2011). Financial
and Managerial Accounting (16th ed.). New York: McGraw Hills Inc.
Romney, M. B., & Steinbart P. J. (2011). Accounting Information System (12th ed.). USA:
Pearson Education.
Meigs, M. (2010). Financial Accounting (15th ed.). New York: McGraw Hills Inc.
Kaluza, J. (2009). Accounting: A Systems Approach (8th ed.). New York: McGraw Hills Inc.
Wallis, K. (2007). Accounting: A Modern Approach (8th ed.). New York: McGraw Hills Inc.
____[ ]____
AIOU–AS-586(18)/PPU–4-10-2018–1000.
11