attachment_122.docx
College of Administration and Finance Sciences
Assignment (2)
Deadline: Saturday 6/11/2021 @ 23:59
|
Course Name: Advanced Financial Accounting |
Student’s Name: |
|
Course Code: ACCT 302 |
Student’s ID Number: |
|
Semester: 1st |
CRN: |
|
Academic Year: 1443 H |
For Instructor’s Use only
|
Instructor’s Name: |
|
|
Students’ Grade: /5 |
Level of Marks: High/Middle/Low |
Instructions – PLEASE READ THEM CAREFULLY
· The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
· Assignments submitted through email will not be accepted.
· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
· Students must mention question number clearly in their answer.
· Late submission will NOT be accepted.
· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
· All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism.
· Submissions without this cover page will NOT be accepted.
Assignment Question(s): (Marks 5)
Q1. Assume the book value of Sub’s net assets is SR 1,000 and that the FMV of the net assets is SR 1,500 assume that the acquisition price was SR 2, 000 (1.0 mark)
Required: explain the three parts of the acquisition price.
Answer:
Q2. Contrast Push-Down Accounting VS Non-Push-Down Accounting. (1.0 mark)
Answer:
Q3. You are given the following transactions ((1.0 mark)
a. Parent purchased inventory for SR 300 and t sold the inventory to a Sub for SR 400 not yet sold to third party.
b. Parent purchased inventory for SR 300 and t sold the inventory to a Sub for SR 400 sold to third party.
c. Parent lent sub. A loan of SR 500
Required: Pass elimination entries for the intercompany transactions.
Answer:
Q4. ABC Corporation acquired a subsidiary paying 700 cash with no differential. Subsidiary’s Common stock SR 500; retained earnings SR 200, During Subsidiary’s first year of operations; it generated net income of SR 100 and paid dividends of SR 40. (2.0 marks)
Required:
a. Pass journal entries to update ABC’s investment account in Subsidiary.
b. Pass the basic elimination entry.
Answer:
