Advanced Financial Accounting

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Assignment (2)

Deadline: Saturday 03/June/2023 @ 23:59

Course Name: Advanced Financial AccountingStudent’s Name:
Course Code: ACCT 302Student’s
Semester: CRN:  30410
Academic Year:

For Instructor’s Use only

Instructor’s Name:
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.
  • Stubben Corporation is a 90%-owned subsidiary of Parker Corporation, acquired for $290,000 on 1/1/2005.
  • Investment cost was equal to book value and fair value.
  •  Stubben’s net income in 2005 was $80,000, and Parker’s income, excluding its income from Stubben, was $100,000.
  • Parker’s income includes a $8,000 unrealized gain on land that cost $40,000 and was sold to Stubben for $48,000.
  • Assume that Stubben sold the land in 2007 for $64,000. Assume Parker adjusts for this transaction in the equity accounts.
  • Split up the adjustment for unrealized gains proportionately.

Required:

  1. What Entry(ies) would Parker make in 2005 and 2007?
  2. Prepare the consolidation entries at 12/31/2005, 12/31/2006, and 12/31/2007.

                                                                                               (5 Marks)

  • Relationship between Currencies and Exchange Rates:
Exchange RatesJanuary 1,  2022June 30, 2022December 31, 2022
Direct Exchange Rate   
Indirect Exchange Rate   

Required:

  1. Choose any two currencies of the two nations
  2. Determine the Direct and Indirect Exchange Rates on the above given dates in table.
  3.  Explain clearly the Decrease or Increase in the DER and IER during the two period given in the table.
  4. Explain Relative Strengths and Weaknesses of these currencies during these periods. 
  5. Discuss the impact of Changes in the Exchange Rates on the Import and Export of these nations.

                                                                                                           (5 Marks)

  • Partnership form of business organisation has certain pros and cons. Explain any Two advantages and Two Disadvantage of Partnership form of business organisation.                                                                                      (5 Marks)