Consolidated Financial Statements Become Acct302

Consolidated Financial Statements Become Acct302

Consolidated Financial Statements Become Acct302

Q1. Explain why consolidated financial statements become increasingly important when the differential is very large.

Q2. Road Corporation acquired all of Conger Corporation’s voting shares on January 1, 20X2, for $470,000. At that time Conger reported common stock outstanding of $80,000 and retained earnings of $130,000. The book values of Conger’s assets and liabilities approximated fair values, except for land, which had a book value of $80,000 and a fair value of $100,000, and buildings, which had a book value of $220,000 and a fair value of $400,000. Land and buildings are the only noncurrent assets that Conger holds.

Required

  • Compute the amount of goodwill at the date of acquisition.
  • Give the eliminating entry or entries required immediately following the acquisition to prepare a consolidated balance sheet.
    • Parent sells Sub inventory with a cost of $48,000 for $60,000.Sub then sells this inventory to outsiders for $75,000.

Q3. Given the following information:

  1. Parent sells Sub inventory with a cost of $8,000 for $10,000, which remains on hand in Sub’s ending inventory.
  • Calculate unrealized profits.
  • Pass eliminating entry in both the cases:
  • How would it effect Parents gross profit and Sub’s inventory
  • Parent sells to Sub and Sub to Outsider
  • Parent sells to Sub, but Sub not yet to Outsider

Q4. Determination of exchange rates depends on factors causing fluctuations.

  • Explain why and its effect on US dollar
  • Distinguish between DER & IER.

Finance

What can behavioral finance teach us about finance?

You have to edit the attached research paper and prepare a wiki on the same topic in your own words.

https://lms.seu.edu.sa/bbcswebdav/pid-4977932-dt-content-rid-55234083_1/courses/FIN-101-10423-201910/What%20can%20behavioural%20finance.pdf

402 – Assignment Question(s):

1. (Write no less that 500 words) Based on what you have learned in Chapter 12, Choose an existing business. This could be a service business, merchandising business; or a manufacturing business. Try to describe the revenue cycle in details. Then, write a case (hypothetical) in which this organization face three types of the following threats and how the organization could resolve these dilemmas:

General Revenue Cycle Threats.

Sales Order Threats.

Shipping Threats.

Billing Threats.

Cash Collections Threats.

2. What is meant by concurrent audits and how it could be achieved?

3. In your own words, differentiate between COSO and COBIT in terms of their purpose and application. Why do organizations need to apply both of them not only one. (write 200 words).


403 – Question 1:

The choice of research method depends on three factors:

  • List these factors[1 mark]
  • Choose two papers and describe these factors in each paper [2 marks]

Factors

Paper 1

Paper 2

Factor 1:

Factor 2:

Factor 3:

Question 2:

Describe the three methods of sample selection and list the advantages and disadvantages of each method [2 marks]