ACCT 302 Saudi Electronic University Plant Inc & Seed Inc Worksheet

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College of Administrative and Financial Sciences Assignment 2 Deadline: (End of Week 9) 20 /03/ 2021 @ 23:59 Course Name: Advanced Financial Accounting Student’s Name: Course Code: ACCT 302 Student’s ID Number: Semester: II CRN: Academic Year: 1441/1442 H For Instructor’s Use only Instructor’s Name: Students’ Grade: /5 Level of Marks: 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 answered 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) Plant Inc. a calendar year reporting company acquired 80% of Seed Inc.’s outstanding common stock for $ 484,000 on Dec. 31, 2018, when the fair value of Seed’s Net Assets was $ 568,000. The following data summarize the fair value calculation: (2 Marks) Book Value Element Common Stock Retained Earnings Under –Or-Over Valuation Inventory Land Equipment Covenant –Not-To Compete Goodwill Element Total Cost Amount $ 150,000 135,000 Life Remaining (9700) 48,000 96,000 40,000 108,700 568,000 2 Months Indefinite 8 Years 5 Years Indefinite Plant Inc. & Seed Inc. Worksheet As at Dec. 31, 2018 Balance Sheet Cash Account Receivable Inventory Investment in Seed Book Value Excess Cost Land Plant ($) 148,000 103,500 152,500 Seed ($) 47,000 118,000 126,000 228,000 226,400 168,000 127,000 Building & Equipment Accumulated Depreciation Total Assets 400,000 -16,000 1,410,400 309,000 -102,000 625,000 Payable & Accruals Long Term Assets Common Stock Retained Earnings Total Liabilities & Equity 265,400 290,000 450,000 405,000 1,410,400 120,000 220,000 150,000 135,000 625,000 You are required to (a) Prepare an Analysis of the Investment Account Through Dec. 31, 2018. Show clearly Book Value and Excess Value calculation by preparing tables. (b) Prepare all consolidation (Elimination Entries) as of Dec. 31, 2018. (c) Prepare a Consolidated Worksheet as at Dec. 31, 2018. 2) The following intercompany transactions occurred during the year: (1.5 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? 3) Peter Corp. purchased a machine on Jan 1, 2011 for $ 120,000 and estimated that the machine would have a useful life of 10 years with no salvage value. After two years, on Dec. 31, 2012, Peter corp. sold the machine to its 100 % owned subsidiary, Sonu Co. for $ 100,000. Sonu Co. estimated that the asset had a remaining useful life of five years. What is the amount of the gain or loss recorded by Peter Corp. at the time of the fixed transfer? What balance would have existed if the transfer had not taken place? Show the worksheet entry on Dec. 31, 2012 to eliminate the asset transfer to make adjustment to change form ‘Actual’ to ‘As If’ the asset hadn’t been transferred. (1.5 Marks)
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College of Administrative and Financial Sciences
Assignment 2
Deadline: (End of Week 9) 20 /03/ 2021 @ 23:59

Course Name:

Student’s Name:

Advanced Financial Accounting
Course Code: ACCT 302

Student’s ID Number:

Semester: II

CRN:
Academic Year: 1441/1442 H

For Instructor’s Use only
Instructor’s Name:
Students’ Grade:

/5

Level of Marks:

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 answered 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) Plant Inc. a calendar year reporting company acquired 80% of Seed Inc.’s outstanding common
stock for $ 484,000 on Dec. 31, 2018, when the fair ...


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