Accounting Principles (Coursework Sample)

481888-717607Group Project Ref No. LU-ACAF-ACAFO- FRM.029.01 Revision Date: Issue 18/08/2025 Group Project Ref No. LU-ACAF-ACAFO- FRM.029.01 Revision Date: Issue 18/08/2025 CLOs: CLO1: Identify the basic concepts, principles, and assumptions of financial accounting. CLO2: Record business transactions in journals, post to ledger accounts, and prepare the trial balance. CLO3: Prepare adjusting of accruals and deferrals and complete the accounting cycle. Note: This Assignment accounts for 30% of the students’ final grade. Dear students in the course ACC106 –Accounting Principles I please find Group Project Rules and Submission Instructions Each group must consist of a maximum of five (5) students, following the Rubrics for Assessing a Group Project. Each group must appoint one Group Leader, responsible for: Coordinating all group tasks and communication. Submitting both the Report (Word/PDF) and the PowerPoint Presentation (PPT) on Blackboard within the submission window. The report should be uploaded using the Blackboard system, which is available online before the due date. Moreover, the similarities should not exceed 20%, if applicable. Project Assessment Criteria The assessment of the project will be undertaken by the instructor. Marks distribution will be as follows: Written Project70% (21 Marks) Oral Presentation30% (9 Marks) Project Submission: This report is due on 18/ 11/ 2025. Good Luck 4818881542541Group Project Ref No. LU-ACAF-ACAFO- FRM.029.01 Revision Date: Issue 18/08/2025 Group Project Ref No. LU-ACAF-ACAFO- FRM.029.01 Revision Date: Issue 18/08/2025 664768230891Question 1(7.5 marks) Question 1(7.5 marks) Introduction: The following table presents ten business transactions for July 2025 of EmirTech Solutions LLC. Using the accounting equation format provided, record the changes in Assets, Liabilities, and Owner’s Equity. Provide a short description of a real business situation that could reflect a changes in the following transaction analyses table . (7.5 marks, 10 transactions x 0.75 marks) Transaction Analysis Table – Emir Tech Solutions LLC No . Cash Accounts Receivabl e Supplies Prepaid Rent Equipm ent Accoun ts Payable Owner’ s Capital Owner’ s Drawin gs Reven ue Expens e 1 +80,000 +80,000 2 +25,000 +25,000 3 -9,000 +9,000 4 +18,000 +18,00 0 5 +12,000 +12,00 0 6 -2,000 +2,000 7 +1,500 +1,500 8 -10,000 -10,000 9 +8,000 -8,000 10 -3,000 +3,000 Solution: 481888-692832Group Project Ref No. LU-ACAF-ACAFO- FRM.029.01 Revision Date: Issue 18/08/2025 Group Project Ref No. LU-ACAF-ACAFO- FRM.029.01 Revision Date: Issue 18/08/2025 1.Effects on Accounting Equation Real Business Description1.Increase in Equity AED 80,000 1.Increase in Assets (Cash) 80,000 Owners invested AED 80,000 Cash to expand Emir Tech solutions. 2.Increase in Assets AED 25,000 2.Increase in Liabilities AED 25,000 Emir Tech solutions Purchased laptops on credit from supplier for25,000 on 30-day credit period 3.Decrease in Assets (Cash) AED 9,000 3.Increase in Assets (AED 9,000). No Change Emir Tech solutions paid 9,000 Cash for three-month office rent 4.Increase in Assets (Cash) AED 18,000 4.Increase in Owners’ Equity AED 18,000 Received 18,000 cash from a customer for setting a computer network 5.Increase in Assets (Accounts receivable) 12,000 5.Increase in Owners’ Equity AED 12,000 The company billed a customer 12,000 for services offered on credit 6.Decrease in Assets (Cash) AED 2,000 6.Decrease in Owners’ Equity AED 2,000 Emir Tech solutions paid 2,000 cash for electricity expenses 7.Increase in Liabilities AED 1,500 7.Decrease in Owners’ Equity AED 1,500 Received office equipment maintenances services from a supplier of 1,500 to pay later 8.Decrease in Assets (Cash) AED 10,000 8.Decrease in liabilities AED 10,000 Emir Tech paid 10,000 cash to settle a debt to Wi-Fi supplier 9.Assets exchanged. Cash and receivables Received 8,000 from a customer who had been billed recently 10.Decrease in Assets (Cash) AED 3,000 10.Decrease in Owners’ Equity AED 3,000 The owner withdrew 3,000 cash for personal expenses 664768267143Question 2(6 marks) Question 2(6 marks) 481888-1251189Group Project Ref No. LU-ACAF-ACAFO- FRM.029.01 Revision Date: Issue 18/08/2025 Group Project Ref No. LU-ACAF-ACAFO- FRM.029.01 Revision Date: Issue 18/08/2025 For each situation below, identify which accounting principle or assumption is being applied. Write your answer clearly in the space provided.(8 × 0.75 mark = 6 marks) The company’s investment in marketable securities is reported at its current market price on the balance sheet date. This is Fair Value Principle also called Market value principle. 911656108185 The owner of Bright Star Café uses personal funds to purchase a new car; this transaction is not recorded in the company’s books. Business entity also called Separate entity principle 911656107709 A piece of machinery purchased for $50,000 is still shown at that cost on the statement of financial position, even though its market value is now $65,000. This is Historical cost Principle 911656107836 Only transactions that can be expressed in monetary terms, such as salaries or rent, are recorded in the accounting system. This is Monetary Units Assumption 911656107328 EmirTech Solutions performs consulting services worth AED 12,000 in June but issues the invoice in July. The revenue is recorded in June, when the services were performed, not when cash is received. This is Revenue Recognition Principle (Accrual Concept) 911656101976 ABC Furniture pays annual insurance of AED 12,000 in January. The accountant records AED 1,000 per month as insurance expense to match the cost with each month’s revenue. This is Matching principle (Expense Recognition) 911656102088 Financial performance of the company is divided into monthly, quarterly, or annual reporting periods to evaluate profitability and position regularly. This is Time period Assumption 911656102071 Assets and liabilities are reported based on the assumption that the business will continue operating in the foreseeable future and not be forced to liquidate. This is Going Concern Assumption 911656102002 Issue 18/08/2025 Revision Date: Ref No. LU-ACAF-ACAFO- FRM.029.01 Group Project 17983130226Question 3 (10.5 marks) Introduction: Al Noor Consultancy LLC is a UAE-based advisory firm providing financial, HR, and legal consultancy services to SMEs. The company operates on an accrual basis and closes its books quarterly. During the quarter ended September 30, 2025, Al Noor experienced rapid client expansion but faced challenges in keeping accurate records of prepaid expenses, unearned revenues, and accrued items. Trial Balance (before adjustments) as September 30, 2025 Account Debit (AED) Credit (AED) Cash 35,000 – Accounts Receivable 22,000 – Supplies 4,500 – Prepaid Insurance 3,600 – Office Equipment 60,000 – Accumulated Depreciation – Equipment – 6,000 Accounts Payable – 12,000 Salaries Payable – - Unearned Service Revenue – 9,000 Notes Payable – 10,000 Owner’s Capital – 50,000 Service Revenue – 85,000 Rent Expense 12,000 – Salaries Expense 25,000 – Utilities Expense 4,300 – Supplies Expense 3,300 – Totals 166,400 166,400 481888-677528Group Project Ref No. LU-ACAF-ACAFO- FRM.029.01 Revision Date: Issue 18/08/2025 Group Project Ref No. LU-ACAF-ACAFO- FRM.029.01 Revision Date: Issue 18/08/2025 Additional Information A physical count shows supplies on hand = AED 1,200. Insurance coverage (one-year policy for AED 3,600) began on July 1, 2025. Equipment depreciation is estimated at AED 500 per month. Unearned service revenue: 60% of the services were completed by September 30. Accrued salaries: AED 3,500 for work done in the last week of September. Accrued service revenue: AED 4,000 earned but not yet billed to clients. Requirements: Prepare the adjusting journal entries for each of the above six items, dated September 30, 2025.(3 marks) Post the entries to the T-accounts for each of the six transactions listed above, dated September 30, 2025. (3 marks) Prepare the adjusted trial balance after recording all adjustments.(4.5 marks) Solution: 1.Journal Entries 1.Supplies on Hand Supplies=4,500 Less used supply= (1,200) On hand=3,300 AED Dr: Supplies Expense 3,300 Cr: Supplies 3,300 2.Prepaid insurance 1-year policy=3,600 Each month=3,600/12=300 (JULY-SEP) =3*300=900 AED Dr: Insurance Expense 900 Cr: Pre paid insurance 900 3.Depreciation of Equipment 1-month depreciation=500 3 months depreciation=500*3=1,500 AED Dr: Depreciation Expense 1,500 Cr: Accumulated depr 1,500 4.Un earned service revenue Total service revenue=9,000 60% of 9,000=5,400 AED Dr: Un earned service revenue 5,400 Cr: service revenue 5,400 5.Accrued Salaries Dr: Salary Expense 3,500 Cr: Salaries Payable 3,500 6.Accrued service revenue Dr: Accounts receivable 4,000 Cr: Service revenue 4,000 2.T. ACCOUNTS Supplies Account A/c Description Debit (AED) Credit (AED) Opening balance 4,500 Supplies used 3,300 Closing balance Sept 30 1,200 Prepaid insurance A/c Description Debit (AED) Credit (AED) Opening balance 3,600 Insurance expired 900 Closing balance sept 30 2...