Accounting Question

Greetings team,

please find the attached assignment 2 for Advanced Financial Accounting and Accounting of financial instiution ,do the needful as per instructed in the cover page, the notes, APA style and reverences.

Appreciated

College of Administrative and Financial Sciences
Assignment 2
Deadline: 23 /11/ 2024 @ 23:59
Course Name: Advanced Financial
Student’s Name:
Accounting
Course Code: ACCT 302
Student’s ID Number:
Semester: First Semester
CRN:
Academic Year: 1446 H (2024-2025)
For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
/15
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.
•
Restricted – ‫مقيد‬
Submissions without this cover page will NOT be accepted.
Assignment 02
Q.1 The Abdullah and Ahad partnership has the following plan for the distribution of
partnership net income (loss):
Particulars
Salaries
Bonus on Net Income
Interest on average Capital Balance
Remainder (if Positive Balance)
Remainder (if Negative Balance)
Abdullah
80000
6%
7%
60%
50%
Ahad
100000
12%
7%
40%
50%
Required:
Calculate the distribution of partnership net income (loss) for each independent situation
below (for each situation, assume the average capital balance of Abdullah is $140,000
and of Ahad is $240,000).
1. Partnership net income is $360,000. (2 Marks)
2. Partnership net income is $240,000. (2 Marks)
3. Partnership net loss is $40,000.
(2 Marks)
Restricted – ‫مقيد‬
2. On Jan, 1 2014, Peter Corp. (a U.S. based company) formed a new subsidiary in
Saudi Arabia, Saeed Inc., with an initial investment of 30,000 SAR.
Assume Saeed Inc.
Purchases inventory evenly throughout 2014. The ending inventory is purchased
Nov. 30, 2014.
Uses straight-line depreciation on fixed assets.
Declares and pays dividends on Nov. 30, 2014.
Purchased the fixed assets on April 1, 2014.
Uses SAR as the functional currency.
Exchange Rates are given:
Jan 1, 2014
0.260
April 1, 2014
0.255
Nov. 30, 2014
0.240
Dec. 31, 2014
0.238
Saeed’s financial statements on Dec. 31, 2014
Accounts
Cash
Account Receivable
Inventory
Note Receivables
Plant & Equipment
Cost of Goods sold
Depreciation
Other Expenses
Dividends
Total Debits
ACC. OC – Translation Adjustment (Debit)
SAR
5000
12000
32000
5000
70000
32000
2000
18000
16000
192000
Adjusted Total Credit
Accumulated Depreciation
Account Payable
Bonds Payable
Mortgage Payable
Restricted – ‫مقيد‬
2000
12000
36000
46000
Common Stock
Sales
Total Credits
30000
66000
192000
REQUIRED
Prepare a schedule to translate Saeed’s financial statements on Dec. 31, 2014 to
U.S. dollars.
(6 Marks)
Restricted – ‫مقيد‬
Q.3 Anwar and Bravo wish to form the A&B partnership. Anwar contributes land
with a book value of $ 175,000 (current value of $200,000) and a building with a
book value of $200,000 (current value of $300,000). Bravo will contribute cash. If
the partners plan to share profits and losses equally after the formation of the
partnership and assuming they have agreed to equal capital contributions, how much
cash will Bravo have to contribute to form the partnership? Pass Journal entry to be
recorded in A&B Firm.
Restricted – ‫مقيد‬
(3 Mark)
College of Administration and Finance Sciences
Assignment (2)
Deadline: Saturday 23/11/2024 @ 23:59
Course Name: Accounting of Financial
Institutions
Student’s Name:
Course Code: ACCT 405
Student’s ID Number:
Semester: 1st
CRN:
Academic Year: 2024-2025
For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
/15
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.
College of Administration and Finance Sciences
Assignment Question(s):
Q.1 Accounting for Securitization under SFAS No. 140 (2000) is a limited
attempt to describe complex transactions that are structured to yield
desired economic and accounting outcomes. This accounting raises three
issues for users of financial reports. State these three issues.
(3 Marks)
Answer:
College of Administration and Finance Sciences
Q. 2 Mortgage banks are exposed to interest rate risk on their mortgagerelated asset through prepayment and discounting effects that are not entirely
distinct. Discuss the Prepayment and Discounting Effects of Mortgage Banks
in detail.
Marks)
Answer:
.
(4
College of Administration and Finance Sciences
Q. 3 A bank to accept credit risk, it must expect to be paid either interest at
a sufficiently large premium above the risk-free rate or an actuarially fair fee.
The required credit risk premium or fee depends upon four determinants.
Explain these determinants in detail. (4 Marks)
Answer:
College of Administration and Finance Sciences
Q. 4 SFAS No. 157 defines fair value as the price that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between
marketplace participants at the measurement date. Fair Value Accounting is
argued to be conceptually and practically preferable to Amortized Cost
Accounting for most financial instruments. But there are some arguments
that are against fair value accounting. Understanding these arguments are
important because they speak directly to the strength and weakness of fair
value accounting. You are required to discuss these arguments in detail.
(4 Marks)
Answer: