Reference no: EM132496056
ACC 102 Accounting Principles - Emirates College of Technology
Question 1: Explain the main differences between a partnership and a corporation forms of an organization. If you decide to create a partnership/corporation, which form do you choose? Explain.
Question 2: On September 30, ABC Company borrows $120,000 from Ottawa State Bank by signing a 6-month, 7.25%, interest-bearing note.
Instructions: Prepare the necessary entries below associated with the note payable on the books of ABC Company.
(i) Prepare the journal entry when the note was issued.
(ii) Prepare the adjusting entry at December 31 to accrue interest.
(iii) Prepare the entry to record payment of the note at maturity date.
Question 3:
Wafa Company did not segregate tax amount with sales. For the month of November It shows a total amount of the bill 59,000. Sales are subject to 18% sales tax.
Instructions:
1. Compute the amount of of sales tax ?
2. Prepare the journal entry to record the sale in Wafa books for the month of November.
Question 4:
The Mohamed & Ahmed Co. reports net sales $ 150,000, cost of goods sold $ 50,000, selling and administrative expenses $ 37,000. Interest allowances are Mohamed $9,000 and Ahmed $6,000; partner salary allowances are Mohamed $30,000 and Ahmed $25,000 and the remainder is shared 6:4 respectively.
Instructions: Indicate the division of net income to each partner and prepare journal entry for net income/net loss division.
Question 5:
Liwa Company had the following transactions:
1. Paid the state $2,000 for incorporation fees
2. Issued 6,000 shares of common stock with a stated value of $10 for $120,000.
3. Issued 4000 shares, 10$ par, preferred stock in exchange for equipments. Liwa Corp preferred stock has been actively traded on the market at $60 per share.
4. Purchased 500 shares its own stock for $ 55 per share.
5. Sold 300 of the purchased shares for $ 53 per share.
Instructions: Prepare the journal entries to record the above stock transactions.
Attachment:- Accounting Principles.rar