Description
- Students are advised to make their work clear and well presented, marks may be reduced for poor presentation.
- 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 (2)
Deadline: May 4, 2024 @ 23:59
Course Name: Advanced Financial
Student’s Name:
Accounting
Course Code: ACCT 302
Student’s ID Number:
Semester: Second Semester
CRN: 24922
Academic Year: 1445 H
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
•
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.
1
College of Administration and Finance Sciences
Assignment Question(s):
Three Questions Each Carries 5 Marks) (total Marks 15)
Q1. The following information extracted from the parent company
a. Parent company loaned $1000 to Subsidiary with an interest rate of 5%.
b. Parent company made a sale to Subsidiary for $500 cash. The inventory had originally cost
Parent company $200. Subsidiary then sold that same inventory to an outsider for $700.
c. Parent company made a sale to Sub for $800 cash. The inventory had originally cost Parent
$300. Subsidiary has not yet sold that same inventory to an outsider.
Required:
Pass the elimination entries for the intercompany transactions.
Answer:
Q2. Explain the differences between translation and remeasurement of financial statements of a foreign
subsidiary.
Answer:
Q3. The partnership of Ibrahim and Rawan has the following provisions:
•
Ibrahim and Rawan receive salary allowances of SAR 50,000 and SAR 15,000, respectively.
•
Interest is imputed at 5% on the average capital investment.
•
Any remaining profit or loss is shared between Ibrahim and Rawan in a 3:1 ratio, respectively.
•
Average Capital investments: Ibrahim, SAR 300,000; Rawan, SAR 150, 000
•
Net income SAR 300,000
Required: pass journal entry to allocate the profit between Ibrahim and Rawan
2
Assignment (2)
Deadline: May 4, 2024 @ 23:59
Course Name: Advanced Financial
Student’s Name:
Accounting
Course Code: ACCT 302
Student’s ID Number:
Semester: Second Semester
CRN: 24922
Academic Year: 1445 H
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
•
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.
1
College of Administration and Finance Sciences
Assignment Question(s):
Three Questions Each Carries 5 Marks) (total Marks 15)
Q1. The following information extracted from the parent company
a. Parent company loaned $1000 to Subsidiary with an interest rate of 5%.
b. Parent company made a sale to Subsidiary for $500 cash. The inventory had originally cost
Parent company $200. Subsidiary then sold that same inventory to an outsider for $700.
c. Parent company made a sale to Sub for $800 cash. The inventory had originally cost Parent
$300. Subsidiary has not yet sold that same inventory to an outsider.
Required:
Pass the elimination entries for the intercompany transactions.
Answer:
Q2. Explain the differences between translation and remeasurement of financial statements of a foreign
subsidiary.
Answer:
Q3. The partnership of Ibrahim and Rawan has the following provisions:
•
Ibrahim and Rawan receive salary allowances of SAR 50,000 and SAR 15,000, respectively.
•
Interest is imputed at 5% on the average capital investment.
•
Any remaining profit or loss is shared between Ibrahim and Rawan in a 3:1 ratio, respectively.
•
Average Capital investments: Ibrahim, SAR 300,000; Rawan, SAR 150, 000
•
Net income SAR 300,000
Required: pass journal entry to allocate the profit between Ibrahim and Rawan
2
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