ACCT 302 assignment 1

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Assignment (1)

Deadline: Saturday 29/April/2023 @ 23:59

Course Name: Advanced Financial AccountingStudent’s Name:
Course Code: ACCT 302Student’s
Semester: 3rdCRN: 
Academic Year: 1444 H

For Instructor’s Use only

Instructor’s Name: Dr. Mohammed Arshad Khan
Students’ Grade:              /15Level 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.  Assume Large Corporation Invested $ 600,000 for Small Corporation and the estimated Fair Market Values of Assets, Liabilities and Equity Accounts are as follows:
AssetsAmount $LiabilitiesAmount $
Account Receivable Inventory LT Marketable Securities PP & E125,000 50,000 55,000 170,000 400,000  Account Payables Retained Earnings Commons Stock180,000 120,000 100,000   400,000  

Required:                                                                                          (2+3 Marks)

  1. Determine the Amount of Goodwill or Bargain Purchase.
  2. What is the Journal Entry in the book of Large Corporation?
  • From the following Table pass Basic Elimination Entry under Equity Method in the book of Parent Company:                                                           (5 Marks)
 Total Book Value= Common Stock+ Additional Paid in Capital+ Retained Earnings
Beginning Book Value + Net Income Dividend600   200 (50)150550(100)   200 (50)
Ending Book Value75015055050
  • Consolidated financial statements present the financial position and results of operations for controlling entity and one or more controlled entities. ‘Consolidated Financial Statement has some advantages but at the same time it is not free from limitations.’ Elaborate this statement.                   (5 Marks)