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Accounting Question

Learning Goal: I’m working on a accounting question and need the explanation and answer to help me learn.

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 theiranswer.
  • Late submission will NOT be accepted.
  • Avoid plagiarism, the work should be in your ownwords, copying from students or other resourceswithout proper referencing will result in ZERO marks.No exceptions.
  • All answers must be typed usingTimes 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) 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

    Inventory

    LT Marketable Securities

    PP & E

    125,000

    50,000

    55,000

    170,000

    400,000

    Account Payables

    Retained Earnings

    Commons Stock

    180,000

    120,000

    100,000

    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

    Book Value

    = Common

    Stock

    + Additional

    Paid in Capital

    + Retained

    Earnings

    Beginning Book Value

    + Net Income

    – Dividend

    600

    200

    (50)

    150

    550

    (100)

    200

    (50)

    Ending

    Book Value

    750

    150

    550

    50

    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)