ACCT 302 SEU Amount of Goodwill or Bargain Purchase Questions

College of Administration and Finance Sciences
Assignment (1)
Deadline: Sunday 30/April/2023 @ 23:59
Course Name: Advanced Financial
Accounting
Student’s Name:
Course Code: ACCT 302
Student’s
Semester: 3rd
CRN:
Academic Year: 1444 H
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.
• 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.
College of Administration and Finance Sciences
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:
Assets
Amount $
Liabilities
Amount $
Account Receivable
125,000 Account Payables
180,000
Inventory
50,000 Retained Earnings
120,000
LT Marketable Securities
55,000 Commons Stock
100,000
PP & E
170,000
400,000
400,000
Required:
(2+3 Marks)
a) Determine the Amount of Goodwill or Bargain Purchase.
b) What is the Journal Entry in the book of Large Corporation?
2) From the following Table pass Basic Elimination Entry under Equity Method in
the book of Parent Company:
(5 Marks)
Total
= Common
+ Additional
+ Retained
Book Value
Stock
Paid in
Earnings
Capital
Beginning
600
150
550
(100)
Book Value
+ Net Income
– Dividend
200
200
(50)
(50)
College of Administration and Finance Sciences
Ending
750
150
550
50
Book Value
3) 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)