Ms. Ameena an MBA degree holder from UK, worked as a Chief Accountant in a Manufacturing industries for 10 years. She then started her own business called Mobile World Solutions in Muscat. She is buying and selling mobile & software accessories in sultanate of Oman. The business uses periodic inventory system. All journal entries should be identified in the books of Mobile Word Solutions.DateTransactions1st January 2020Purchases 100 Galaxy mobiles at a cost of OMR 120 each from Akbar Mobiles (wholesale merchandise) The payment terms are 5/10, n/30. 3rd January 2020Purchases 100 external hard disk at a cost of OMR 60 each Computer Supplies LLC (wholesale merchandise) The payment terms are 3/10, n/30. Trade discount was given by the supplier @ 5% on invoice price5th January 2020The business discovers that 25 of the Galaxy mobiles are wrong color and returns to Akbar mobiles for a full refund..10th January 2020Full settlement was made by the business to Akbar mobiles.15th February 2020The business sold 100 Galaxy mobiles at a Cost OMR 150 each to Nizwa Mobiles (a retail merchandise). The payment terms are 2/10,n/60.20th February 2020Nizwa mobiles discovers that 30 mobiles which was purchased on 15th February 2020 are slightly damaged. The customer decides to keep the mobiles but receives a sales allowance OMR 5 per mobiles. 28th February 2020Received full settlement from Nizwa mobiles.ANSWER QUESTION NO 42 TO 45 1-Identify the journal entry on 3rd January 2020?a.Debit Purchase OMR 6000 Credit Accounts payable OMR 6000b.Debit Purchase OMR 5700 Debit Purchase Discount 300 Credit Accounts payable OMR 6000c.Debit Accounts receivable OMR 5700 Credit Sales OMR 5700d.Debit Purchase OMR 5700 Credit Accounts payable OMR 57002-Which one of the following journal entry is Correct on 28th February 2020?a.Debit Cash OMR 14,850 Credit Accounts receivable OMR 14,850b.Debit Accounts Payable OMR 14,850 Credit Cash OMR 14,850c.Debit Cash OMR 14,553 Debit Discount OMR 297 Credit Accounts receivable OMR 14,850d.Debit Cash OMR 14,850 Debit Discount OMR 150 Credit Accounts receivable OMR 15,0003-Which one of the following journal entry is Correct on 15th February 2020?a.Debit Sales OMR 15,000 Credit Accounts receivables OMR 15,000b.Debit Accounts receivable OMR 15,000 Credit Sales OMR 15,000c.Debit Purchase OMR 15,000 Credit Accounts payable OMR 15,000d.Debit Accounts receivables OMR 15,000 Credit Sales returns and allowances OMR 15,0004-Which one of the following journal entry is Correct on 20th February 2020?a.Debit Sales return and allowances OMR 150 Credit Accounts receivable OMR 150b.Debit Cash OMR 150 Credit Sales return and allowances OMR 150c.Debit Accounts receivable OMR 150 Credit Cash OMR 150d.Debit Accounts payable OMR 150 Credit Purchase returns and allowances OMR 150

The journal entries are prepared to keep the record of day to day transactions of the business.

Ms. Ameena an MBA degree holder from UK, worked as a Chief Accountant in a Manufacturing industries for 10 years. She then started her own business called Mobile World Solutions in Muscat. She is buying and selling mobile & software accessories in sultanate of Oman. The business uses periodic inventory system. All journal entries should be identified in the books of Mobile Word Solutions. Date Transactions 1st January 2020 Purchases 100 Galaxy mobiles at a cost of OMR 120 each from Akbar Mobiles (wholesale merchandise) The payment terms are 5/10, n/30. 3rd January 2020 Purchases 100 external hard disk at a cost of OMR 60 each Computer Supplies LLC (wholesale merchandise) The payment terms are 3/10, n/30. Trade discount was given by the supplier @ 5% on invoice price 5th January 2020 The business discovers that 25 of the Galaxy mobiles are wrong color and returns to Akbar mobiles for a full refund.. 10th January 2020 Full settlement was made by the business to Akbar mobiles. 15th February 2020 The business sold 100 Galaxy mobiles at a Cost OMR 150 each to Nizwa Mobiles (a retail merchandise). The payment terms are 2/10,n/60. 20th February 2020 Nizwa mobiles discovers that 30 mobiles which was purchased on 15th February 2020 are slightly damaged. The customer decides to keep the mobiles but receives a sales allowance OMR 5 per mobiles. 28th February 2020 Received full settlement from Nizwa mobiles. ANSWER QUESTION NO 42 TO 45

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Ms. Ameena an MBA degree holder from UK, worked as a Chief Accountant in a Manufacturing industries for 10 years. She then started her own business called Mobile World Solutions in Muscat. She is buying and selling mobile & software accessories in sultanate of Oman. The business uses periodic inventory system. All journal entries should be identified in the books of Mobile Word Solutions.

Date	Transactions
1^st January 2020	Purchases 100 Galaxy mobiles at a cost of OMR 120 each from Akbar Mobiles (wholesale merchandise) The payment terms are 5/10, n/30.
3^rd January 2020	Purchases 100 external hard disk at a cost of OMR 60 each Computer Supplies LLC (wholesale merchandise) The payment terms are 3/10, n/30. Trade discount was given by the supplier @ 5% on invoice price
5^th January 2020	The business discovers that 25 of the Galaxy mobiles are wrong color and returns to Akbar mobiles for a full refund..
10^th January 2020	Full settlement was made by the business to Akbar mobiles.
15^th February 2020	The business sold 100 Galaxy mobiles at a Cost OMR 150 each to Nizwa Mobiles (a retail merchandise). The payment terms are 2/10,n/60.
20^th February 2020	Nizwa mobiles discovers that 30 mobiles which was purchased on 15^th February 2020 are slightly damaged. The customer decides to keep the mobiles but receives a sales allowance OMR 5 per mobiles.
28^th February 2020	Received full settlement from Nizwa mobiles.

ANSWER QUESTION NO 42 TO 45

1-Identify the journal entry on 3rd January 2020?

Debit Purchase OMR 6000 Credit Accounts payable OMR 6000

Debit Purchase OMR 5700 Debit Purchase Discount 300 Credit Accounts payable OMR 6000

Debit Accounts receivable OMR 5700 Credit Sales OMR 5700

Debit Purchase OMR 5700 Credit Accounts payable OMR 5700

2-Which one of the following journal entry is Correct on 28th February 2020?

Debit Cash OMR 14,850 Credit Accounts receivable OMR 14,850

Debit Accounts Payable OMR 14,850 Credit Cash OMR 14,850

Debit Cash OMR 14,553 Debit Discount OMR 297 Credit Accounts receivable OMR 14,850

Debit Cash OMR 14,850 Debit Discount OMR 150 Credit Accounts receivable OMR 15,000

3-Which one of the following journal entry is Correct on 15th February 2020?

Debit Sales OMR 15,000 Credit Accounts receivables OMR 15,000

Debit Accounts receivable OMR 15,000 Credit Sales OMR 15,000

Debit Purchase OMR 15,000 Credit Accounts payable OMR 15,000

Debit Accounts receivables OMR 15,000 Credit Sales returns and allowances OMR 15,000

4-Which one of the following journal entry is Correct on 20th February 2020?

Debit Sales return and allowances OMR 150 Credit Accounts receivable OMR 150

Debit Cash OMR 150 Credit Sales return and allowances OMR 150

Debit Accounts receivable OMR 150 Credit Cash OMR 150

Debit Accounts payable OMR 150 Credit Purchase returns and allowances OMR 150

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