PART 1 1. Journalize the below transactions by using the correct Debit/Credit rules:

a) Bought Machinery from Caterpillar Ltd for Dhs10,000 the payment will be made after 30 days. b) Paid Salaries to the employees for the month of Oct22 Dhs 12,000 c) Sold a Motor Vehicle to Mr. Abdallah for Dhs 38,000 and received the money for the same. d) Generated revenue of Dhs 100,000 for the month of Sept22 by selling goods to XYZ Co. They will pay after 45 days. e) Partially paid Caterpillar Ltd an amount of Dhs 8,000. PART 2

2. Simplex Inc. sells its product at $80 per unit with a contribution margin of 40%. During 2016, Simplex sold 5,000 units of its product; its total fixed costs are $2,100,000.

Calculate in $ the (a) contribution margin, and (b) variable costs.