Description
I just want to solve the second and third questions
Assignment (1)
Deadline: Saturday 04/10/2025 @ 23:59
Course Name: Advanced Financial
Student’s Name:
Accounting
Course Code: ACCT 302
Student’s ID Number:
Semester: First Semester
CRN:
Academic Year: 1447 H (2025-2026)
For Instructor’s Use only
Instructor’s Name:
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.
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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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Restricted – مقيد
College of Administration and Finance Sciences
Assignment Question(s):
(Marks 15)
1. Zaid Ltd and Zafar Ltd agreed to merge on January 1, 2024. On the date of the
merger agreement, the companies reported the following data: (6 Marks)
Current Assets
Long Term Assets
Zaid Ltd
Book
Fair Value
Value
190,000
240,000
600,000
500,000
Zafar Ltd
Book
Fair Value
Value
50,000
62,000
300,000
275,000
Accumulated Depreciation
Total Assets
(130,000)
660,000
(50,000)
300,000
Current Liabilities
Common Stock
Capital in excess of Par Value
Retained Earnings
Total Liabilities
100,000
300,000
40,000
220,000
660,000
Balance Sheet
740,000
120,000
75,000
50,000
10,000
165,000
300,000
337,000
75,000
Zaid Ltd has 15,000 shares of its $20 par value shares outstanding on January 1, 20X3,
and Zafar Ltd has 10,000 shares of $5 par value stock outstanding. The market values
of the shares are $400 and $75, respectively.
Required:
Zaid Ltd issues 1,000 shares of stock in exchange for all of Zafar Ltd’s net assets.
Prepare a balance sheet for the combined entity immediately following the merger.
Solution:
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Restricted – مقيد
College of Administration and Finance Sciences
2. From the Given information Calculate the Book Value and pass Elimination entry:
(6 Marks)
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:
Q.3 The following intercompany transactions occurred during the year: (3 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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