Program : Academic

Damat Hotel and Business College of Degree Year: 2023

Distance Education
Assignment One
Instructor: Wubshet
Course title – Fundamentals of Accounting II M.

Submission Date:- _____________________

Full Name: -
ID No.:-
Department:-
Coordination Center: -
Demonstrate the following questions.
1. List and Describe procedures of Internal control over cash?
2. Describe Characteristics of a promissory note?
3. List four major factors that affect the computation of depreciation?
4. Define Payroll Related Terms?
5. What are Characteristics of Partnerships?
6. What are the advantages and dis advantages of the partnership?
7. What features do corporations have?
8. What is the difference between common stock and preferred stock?
WORK OUT
1.The January bank statement sent by Awash Bank to ABC Company shows Birr 5,000.17
assume also that on January 31, 2012, the Cash account of ABC Company shows a balance of
Birr 4,262.83. The accountant of ABC Company has identified the following items:
1. A deposit of Birr 410.90 made after banking hours on Jan. 31 does not appear on the bank statement.
2. Two checks issued in January have not yet been paid by the bank:
Check No. 301 Birr 110.25
Check No. 342 607.50
3. A credit memorandum was included in the bank statement, which was for proceeds from collection of a non-
interest-bearing note receivable to ABC Company Birr 524.74.
4. Two debit memorandums accompanied the bank statement, a check of Birr 50.25 received from a customer, XYZ
Company and deposited by ABC Company was charged back as
NSF & service charge by the bank for the month January amounts Birr 17.00
5. Check No. 305 was issued by ABC Company for payment of telephone expense in the amount of Birr 85 but was
erroneously recorded in the cash payments journal as Birr 58.

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Instructions:
I. Prepare bank reconciliation.
II. Record all the necessary journal entries related to bank reconciliation.
2. Assume that Walia Company issued a promissory note to Lucy Company at a term of 60 days, 8% note for Birr
20,000 dated on February 10. Compute:
a) Maturity Date b) Interest and C) Maturity Value
3. The following data referring to the beginning inventory and purchase of “Item A” is taken from the records of
ABC Company that uses Periodic inventory system
January 1 Inventory (BI)…………………. 200 units @ 9/unit = Birr 1,800
March 10 Purchase- 1st Purchase……….. 300 units @ 10/unit = 3,000
September 21 Purchase- 2nd Purchase … 400 units @ 11/unit = 4,400
November 18 Purchase- 3rd Purchase….. 100 units @ 12/unit = 1,200
Units available for sale = 1000 units CMAS= 10,400
Assume units on hand at the end of the year were 300 units.
Instruction:
Determine the cost of Ending Inventory (EI) and the Cost of Merchandise Sold (CMS), under the following
inventory costing methods
1. First in First out (FIFO) Method
2. Last in First out (LIFO) Method
3. The Average Cost Method

N.B: it a must to attaché this paper with your answers during submission!

Damat Hotel and Business College of Distance Education

| Mobile: 0905515253/0905525354
E-mail: damattcollege@gmail.com P.O.Box: 29379 Addis Ababa, Ethiopia Telegram: Page 2
https://t.me/DamatHotelandBusinessCollege https://t.me/DamatHotelandBusinessCollegeሀ
”A Journey towards Excellence”