Кеquired:Prepare current assets sectión of the báláncé šhéét.Q7. Rasheed Company uses net method to record the sales made on credit. On June 30, 2019, itmade a sales of OMR 25,000 with term 3/15, n/45. Prepare the required journal entries, if:(a) On July 7 Rasheed company received full payment.(b) On July 22 Rasheed company received full payment.Q8. Ahmed construction began work on a OMR 10,000,000 contracts in 2016 to construct abridge. During 2016, it incurred cost of OMR 2,450,000, billed their customers for 1,350,000, andcollected OMR 1,200,000. At December 31, 2016, the estimated cost to complete the constructionis OMR 4,500,000. Prepare journal entries by following Cost-recovery method.Page 3Section CAnswer Any ONE Question(1 x 6 marks = 6 marks)Q9. Al-Duqum Construction Company has a contract to construct a OMR 9,000,000 bridge atan estimated cost of OMR 8,000,000. The contract is to start in July 2020, and the bridge is to becompleted in October 2022. The following data pertain to the construction period.Details20212020OMR 4,000,000 OMR 5,832,000 OMR 8,100,0002022Costs to dateEstimated costs to complete4,000,0002,268,000-0-Progress billings during the year4,800,0003,500,0001,800,0002,400,0004,000,000Cash collected during the year1,500,000Instructions: Using the percentage-of-completion method for long-term contracts, compute theestimated gross revenue, gross profit that would be recognized during 2020 and 2021 year of theconstruction period.Q10.The financial record of Adam Inc were destroyed by fire at the end of 2020.Fortunately, the controller had kept certain statistical data related to the income statement as below:a. The beginning inventory was OMR 138,000.b. Sales discount was OMR 25,500c. 45,000 ordinary shares were outstanding.с.d. Interest expenses OMR 30,000c. Income tax rate 30%f. Cost of goods sold OMR 750,000g. Administrative expenses are 20% of cost of goods sold but only 10% of gross sales.h. Half of the operating expenses related to sales activities.From the foregoing information, prepare an income statement.Page 4

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Q7. Rasheed Company uses net method to record the sales made on credit. On June 30, 2019, it made a sales of OMR 25,000 with term 3/15, n/45. Prepare the required journal entries, if: (a) On July 7 Rasheed company received full payment. (b) On July 22 Rasheed company received full payment.

Q7. Rasheed Company uses net method to record the sales made on credit. On June 30, 2019, it made a sales of OMR 25,000 with term 3/15, n/45. Prepare the required journal entries, if: (a) On July 7 Rasheed company received full payment. (b) On July 22 Rasheed company received full payment.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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