Principles of Accounting (Coursework Sample)

Individual Assignment COURSE TITLE: Principles of Accounting CODE: ACC 100 ASSIGNMENT – 2 (15% of Total) Semester: Fall 2025-26 Instructor Name: Dr Dalia Hemdan Course Learning outcomes CLO1: Define the financial accounting concepts covered under the IFRS (International Financial Reporting Standards) and their roles and impact on organizations. CLO2: Identify the financial statements needed for an effective decision-making process. CLO3: Apply the necessary steps of the accounting cycle. X CLO 4: Demonstrate the adjusting entries and the adjusted trial balance at the period end. CLO5: Prepare the major financial statements and the closing entries. Student Name ------------------------------------- Student ID --------------------------------------- Q1 (CLO3) Q2 (CLO3) Q3 (CLO3) Total 5 5 5 15 Exercise 1: (5 marks) Carillo Industries collected $108,000 from customers in 2017. Of the amount collected, $25,000 was for services performed in 2016. In addition, Carillo performed services worth $36,000 in 2017, which will not be collected until 2018. Carillo Industries also paid $72,000 for expenses in 2017. Of the amount paid, $30,000 was for expenses incurred on account in 2016. In addition, Carillo incurred $42,000 of expenses in 2017, which will not be paid until 2018. Instructions (a) Compute 2017 cash-basis net income. (b) Compute 2017 accrual-basis net income. Income Statement (2017) Cash Basis Total cash Receipts (2017) =$108,000 Less: Expenses incurred (2017) = ($72,000) Net income for the year= (108,000-72,000) =$36,000 Income Statement (2017) Accrual Basis Total cash That was collected (2017) =$108,000 Less: Amount collected for services (2016) = ($25,000) Hence: Amount earned in 2017= (108,000-25,000) =$83,000 Add: Earned amount from services (2017) =$36,000 Total Revenue Earned in 2017= (83,000+36,000) =$119,000 Less: Expenses; From the Amount paid in (2017), $30,000 was for 2016=72000-30,000) Therefore: From above 2017 =$42,000 Add: incurred in 2017=$42,000 Hence Total Expense= (42,000+42,000) =$84,000 Net income for the year= (119,000-84,000) =$35,000 Exercise 2: (5 marks) Hong Corporation encounters the following situations: Transaction Adj Entry Type 1 Hong collects $1,300 from a customer in 2017 for services to be performed in 2018. Unearned Revenue 2 Hong incurs utility expense which is not yet paid in cash or recorded. Accrued Expense 3 Hong’s employees worked 3 days in 2017 but will not be paid until 2018. Accrued Expense 4 Hong performs services for customers but has not yet received cash or recorded the transaction. Accrued Revenue 5 Hong paid $2,400 rent on December 1 for the 4 months starting December 1. Prepaid Expense Instruction Identify what type of adjusting en...