Accounting II - Final Assignment

College of Management and Technology
Final Assignment
Department : Finance and Accounting
Course / Code: Accounting (2)/ ACC121E/EY121
Start Time : N/A
Exam Time : N/A
Lecturer name : Dr. Ayman Eltemsahi/Karim Elfaham
Student Name : -----------------------------------
Registration # : ------------------------------------
Data for lecturer only

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Lecturer Name : Dr. Ayman Eltemsahi/Karim Elfaham
Date: 4/6/2020 Sign:
EDQMS 2/5
1
Question One: (ILOs; 1.2, 2.3, 3.3)
Brown Company's bank statement for September 30 showed a cash balance of $1,350. The
company's Cash account in its general ledger showed a $995 debit balance. The following
information was also available as of September 30.
a. A $125 debit memoranda is included with the bank statement and dealt with a customer's check
for $100 marked NSF and returned to Brown Company by the bank. In addition, the bank charged
the company's a $25 processing fee.
b. The September 30 cash receipts, $1,525, were placed in the bank's night depository after
banking hours on that date and this amount did not appear on the September 30 bank statement.
c. A $15 debit memorandum for checks printed by the September 30 bank was included with the
canceled checks.
d. Outstanding checks amounted to $1,145.
e. A customer's note for $900 was collected by the bank. A collection fee of $25 was deducted by
the bank and the difference was deposited in the account.
Required; Prepare a bank reconciliation as of September 30.
Question Two: (ILOs; 1.2, 2.3, 3.3)

A petty cash fund was originally established with a check for $150. In the petty cash fund on
December 31 (the period-end), you find the following:
Prepare the general journal entry to record the replenishment of the petty cash fund on December
31.
Question Three: (ILOs; 1.3, 2.4, 3.4)

At the end of year 2016, Kazem Company estimated and recorded its bad debts expense as 0.5% of its
annual credit sales of 900,000 EGP. On the following February 1, Kazem Company decided that the 1000
EGP of Alaa Company is uncollectible and needs to be written off. However, on June 5, Alaa Company
unexpectedly paid the amount previously written off. Prepare the journal entries of Kazem to record these
transactions and events of December 31, February 1, and June 5.
Question Four: (ILOs; 1.4, 2.5, 3.5)

Zizi Company installed a computerized manufacturing machine in its factory at the beginning of the year 2016
at a cost of 90,000 EGP. The useful life of the machine is estimated at 10 years, or 160,000 units of product,
with a 10,000 EGP salvage value. During the second year, the machine produces 25,000 units of product.
Determine the machine’s second year depreciation using the units-of-production method.
Question Five: (ILOs; 1.4, 2.5, 3.5)

Zakaria Market owns an equipment with a cost of 125,000 EGP that has an accumulated depreciation 91,000
EGP. Prepare the necessary journal entry to record the disposal of the equipment on January 1, 2017 under
each of the following independent situations:
1. Zakaria sold the equipment for 17,500 EGP cash. (ILOs; 1.4, 2.5, 3.5)
2. Zakaria sold the equipment for 40,000 EGP cash. (ILOs; 1.4, 2.5, 3.5)
2
Answers
Question One
Brown’s Company
Bank Reconciliation
September 30
Bank Statement Balance $ 1,350 Book Balance $ 995
Add Add
Deposits in Transits $ 1,525 Customer’s Note $ 900
Deduct Deduct
Outstanding Checks $ 1,445 Debit memo for checks printed $ 15
Collection Fee $ 25
Non-Sufficient Funds $ 125
Adjusted Bank Balance $ 1,730 Adjusted Book Balance $ 1,730
Question Two
Replenish the Petty Cash Fund on December 31
Date Accounts Dr Cr
Dec.31 Postage $ 43.50
Office Supplies $ 51.85
Office Equipment Repair $ 49.00
Cash over & Short $ 1.4
148.6
Cash (144.35+4.25)
Calculations
Petty Cash Fund = Cash Remaining + Receipts +/- Cash over and
short
150 4.25 144.35

1.4
148.6 (150-148.6)
Total Expenses (Receipts) = 43.50 + 51.85 + 49.00 = 144.35
3
Question Three
Bad Dept Expense = Bad Dept Percentage x Credit Sales

= 0.5 % x 900,000
= 4,500
Adjusting Entry
Date Account Dr Cr
Dec.31 Bad Depts Expense EGP 4,500
AFDA EGP 4,500
Write Off Entry
Date Account Dr Cr
Feb.1 AFDA EGP 1,000
A/R Alaa Company EGP 1,000
Recovering Entries
Date Account Dr Cr
June 5 A/R Alaa Company EGP 1,000
AFDA EGP 1,000
Date Account Dr Cr
June 5 Cash EGP 1,000
A/R Alaa Company EGP 1,000
4
Question Four
𝐶𝑜𝑠𝑡−𝑆𝑎𝑙𝑣𝑎𝑔𝑒 𝑉𝑎𝑙𝑢𝑒
Depreciation Per Unit =
𝑇𝑜𝑡𝑎𝑙 𝑈𝑛𝑖𝑡𝑠 𝑜𝑓 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛
90000−10000
Depreciation Per Unit = = 0.5 EGP per unit
160000
Depreciation Expense of the Period = Depreciation per Unit x Units Produced in Period
Depreciation Expense of the Period = 0.5 x 25000 = $ 12,500
Question Five
Book Value = Cost – Accumulated Depreciation
Book Value = 12,500 – 91,000 = EGP 34,000
1) Date Account Dr Cr
Jan.1 Cash EGP 17,500
Loss on Disposal EGP 16,500
Accumulated Depreciation EGP 91,000

(Equipment)
Equipment EGP 125,000
2)
Date Account Dr Cr
Jan.1 Cash EGP 40,000
Accumulated Depreciation EGP 91,000

(Equipment)
Equipment EGP 125,000
Gain on Disposal EGP 6,000

Accounting II - Final Assignment

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College of Management and Technology

Department : Finance and Accounting

Course / Code: Accounting (2)/ ACC121E/EY121

Start Time : N/A

Exam Time : N/A

Lecturer name : Dr. Ayman Eltemsahi/Karim Elfaham

Student Name : -----------------------------------

Data for lecturer only

Question Two: (ILOs; 1.2, 2.3, 3.3)

Question Three: (ILOs; 1.3, 2.4, 3.4)

Question Four: (ILOs; 1.4, 2.5, 3.5)

Question Five: (ILOs; 1.4, 2.5, 3.5)

Adjusted Bank Balance $ 1,730 Adjusted Book Balance $ 1,730

Replenish the Petty Cash Fund on December 31

Dec.31 Postage $ 43.50

Office Supplies $ 51.85

Office Equipment Repair $ 49.00

Cash over & Short $ 1.4

150 4.25 144.35

Bad Dept Expense = Bad Dept Percentage x Credit Sales

Dec.31 Bad Depts Expense EGP 4,500

AFDA EGP 4,500

Write Off Entry

Feb.1 AFDA EGP 1,000

A/R Alaa Company EGP 1,000

June 5 A/R Alaa Company EGP 1,000

AFDA EGP 1,000

June 5 Cash EGP 1,000

A/R Alaa Company EGP 1,000

Depreciation Expense of the Period = 0.5 x 25000 = $ 12,500

Book Value = Cost – Accumulated Depreciation

Book Value = 12,500 – 91,000 = EGP 34,000

Jan.1 Cash EGP 17,500

Loss on Disposal EGP 16,500

Accumulated Depreciation EGP 91,000

Equipment EGP 125,000

Jan.1 Cash EGP 40,000

Accumulated Depreciation EGP 91,000

Equipment EGP 125,000

Gain on Disposal EGP 6,000

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