ACCT 302 ASIGNMENT 1

Please read the questions carefully and answer them completely and clearly

Please pay attention to the spelling rules in your answers to the questions

Please submit it on 05/10/2024

Please do not repeat the solution with others

Words should be 400 to 500 words

Please list 5 references

The answer file for the question is named:Assignment 1 ACCT 302 Questions – FROM TEACHER

College of Administration and Finance Sciences
Assignment (1)
Deadline: Saturday 12/10/2024 @ 23:59
Course Name: Advanced Financial
Accounting
Student’s Name:
Course Code: ACCT 302
Student’s ID Number:
Semester: First Semester
CRN: 13480
Academic Year: 1446 H (2024-2025)
For Instructor’s Use only
Instructor’s Name: Dr. Mohammed Arshad Khan
Students’ Grade:
/15
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
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The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
•
Assignments submitted through email will not be accepted.
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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.
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Students must mention question number clearly in their answer.
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Late submission will NOT be accepted.
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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.
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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.
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Submissions without this cover page will NOT be accepted.
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Assignment Question(s):
(Marks 15)
From the Given information Calculate the Book Value and pass Elimination
entry:
(5 Marks)
Q1.
1) PQR Ltd owns 75% of STV Ltd.
2) STV Ltd ’s net income for 20X4 is SAR 250,000
3) PQR Ltd’s net income for 20X4 from its own separate operations is SAR
500,000.
4) STV Ltd’s declares dividends of SAR 36,000 during 20X4.
5) STV Ltd has 20,000 shares of $5 par stock outstanding that were originally
issued at $15 per share.
6) STV Ltd’s beginning balance in Retained Earnings for 20X4 is SAR 150,000
Answer:
Book Value Calculation:
Elimination Entry
Date Description
PF
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Debit SAR
Credit SAR
College of Administration and Finance Sciences
Q.2 The following intercompany transactions occurred during the year: (4 Marks)
• Parent loaned $12500 to Sub. To keep things simple, assume that there is
no interest revenue or interest expense associated with this loan.
• Parent made a sale to Sub for $13000 cash. The inventory had originally
cost Parent $12220. Sub then sold that same inventory to an outsider for
$14000.
• Parent made a sale to Sub for $15000 cash. The inventory had originally
cost Parent $11280. Sub has not yet sold that same inventory to an
outsider. (Don’t forget equity method entry!)
Based on our “conceptual discussion,” what consolidation worksheet entries
would you make?
Solution:
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Q3. Acquisition with Differential: (6 MARKS)
Road Corporation acquired all of Conger Corporation’s voting shares on January 1,
20X2, for $470,000. At that time Conger reported common stock outstanding of $80,000
and retained earnings of $130,000. The book values of Conger’s assets and liabilities
approximated fair values, except for land, which had a book value of $80,000 and a fair
value of $100,000, and buildings, which had a book value of $220,000 and a fair value
of $400,000. Land and buildings are the only noncurrent assets that Conger holds.
Required
a. Compute the amount of goodwill at the date of acquisition.
b. Give the eliminating entry or entries required immediately following the acquisition
to prepare a consolidated balance sheet.
Answer:
a. Goodwill calculated as follows:
b.
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