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.

/in /by

Accounting Question

  • 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)

  1. Determine the Amount of Goodwill or Bargain Purchase.
  2. What is the Journal Entry in the book of Large Corporation?

 

 

  • 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

 

  • 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)

On January 1, Omar signs a contract with a client to provide catering services for their wedding on July 1. The total contract amount is SAR 25,000. When should Omar recognize the revenue for this transaction under the accrual basis?

/in /by

Principles of Accounting

Assignment Question(s):   (Marks 15)

Question 1:    (5 Marks)

Sarah owns a boutique that sells women’s clothing and accessories. She keeps track of her business transactions using a journal.

  1. On March 1, Sarah invested SAR 10,000 cash in her business to start operations. Prepare the journal entry.
  2. On March 5, Sarah purchased inventory for SAR 5,000 on credit from a supplier. Prepare the journal entry.
  3. On March 10, Sarah sold SAR 3,000 worth of inventory for cash. Prepare the journal entry.
  4. On March 15, Sarah paid SAR 1,000 cash for rent for the month. Prepare the journal entry.
  5. On March 20, Sarah purchased office supplies for SAR 200 cash. Prepare the journal entry.
  6. On March 25, Sarah received a bill for SAR 800 for advertising expenses incurred during the month. Prepare the journal entry.
  7. On March 31, Sarah paid SAR 4,000 cash to the supplier for the inventory purchased on credit earlier in the month. Prepare the journal entry.

Instructions: Prepare the journal entry in SAR currency for each of the above transactions.

 

Question 2:   (5 Marks)

Omar owns a catering service company that provides food and beverage services for events such as weddings and corporate events. He uses the accrual basis of accounting to record his company’s financial transactions. Here are some of the transactions that occurred during the year:

  1. On January 1, Omar signs a contract with a client to provide catering services for their wedding on July 1. The total contract amount is SAR 25,000. When should Omar recognize the revenue for this transaction under the accrual basis?
  2. On July 1, Omar provides catering services to the client from the January 1 contract. The client pays the full amount of SAR 25,000 on the day of the event. When should Omar recognize the revenue for this transaction under the accrual basis?
  3. On October 1, Omar provides catering services to a corporate client and invoices them for SAR 12,000. The payment is not received until November 15. When should Omar recognize the revenue for this transaction under the accrual basis?

 

Question 3:   (5 Marks)

ABC Consulting is a company that provides consulting services to clients in various industries. The company also rents out a portion of its office space to other businesses. As the accountant for ABC Consulting, you are tasked with preparing the company’s income statement for the year 2022 based on the following information taken from the trial balance:

  • Consulting revenue: SAR70,000
  • Rental revenue: SAR30,000
  • Supplies expense: SAR5,000
  • Rent expense: SAR20,000
  • Wages expense: SAR30,000

Your task is to prepare the income statement for ABC Consulting in 2022 based on the information provided above.

What is the difference between audit, attestation, and assurance services? And how do the answers provide value to stakeholders?

/in /by

Acct auditing

Assignment Question(s):                                                    (Marks 15)

IMPORTANT NOTES: Answer in your OWN words, DO NOT COPY from slides, fellow students, or internet sources without proper citation.

Q1. What is the difference between audit, attestation, and assurance services? And how do the answers provide value to stakeholders?

Your answer should have a minimum of 400 words. (5 Marks)

 

Q2. How can auditors effectively plan an audit in a dynamic and uncertain environment? Provide an example to describe your answer.

Your answer should have a minimum of 400 words. (5 Marks)

 

Q3. In your opinion, what are the benefits of assessing the effectiveness of internal controls over financial statements ICFR to the audit process, other than being a requirement of PCAOB?

Your answer should have a minimum of 300 words. (5 Marks)

 

Select a listed company of your choice from Muscat Stock Exchange. Write a report of 1000 to 1200 words excluding the cover page and the reference pages.

/in /by

AUDIT AND ASSURANCE. (Oman arab bank)

  • Select a listed company of your choice from Muscat Stock Exchange.
  • THE COMPANY NAME (Oman arab bank)
  • Download the corporate governance report, annual report, company news and other data (relating to the year 2021) that you require for preparing this report.
  • Write a report of 1000 to 1200 words excluding the cover page and the reference pages.

What is your overhead (what items make up your overhead)? Since there are a billion coffee shops, what makes yours different or makes yours stand out? Do you have promotions?

/in /by

 Financial Reporting Assignment

The Financial Reporting Assignment is a Powerpoint Presentation that discusses information needed to start and manage a new business. This assignment should take about 3-4 hours to complete (based on feedback from prior semesters), and once completed, should be submitted to the assignment dropbox below. You may submit multiple versions of your Powerpoint, but the last submission.

This semester we our business is a coffee shop. The Powerpoint should be 5 (least) to 10 (most) slides long, and should mention:

  1. Your company name, logo, and perhaps you have a clever slogan.
  2. The location where you operate (garage or maybe you are a street vendor) and tell why you chose this location.
  3. Number of employees and pay rate per employee. You could work for free while your business is getting off of the ground, or you could pay an employee from the start. Mention the pro’s and con’s of each of these scenarios.
  4. What risks did you incur and how did you control these risks.
  5. Where do you advertise? (Pintrest, Facebook, etc.)
  6. Are you socially responsible? If the answer is yes, give an example. If the answer is no, tell why not.
  7. A menu of items you will sell (about 10 items) with prices. This could be anything from 5 flavors of coffee and five pastries, to 8 flavors of coffee/tea and 2 breakfast cakes. You could have cake pops, or you could have no food (only coffee/tea). The choice is yours.
  8. What type of production will you use? Assembly line? Job Order? Why did you make this choice?
  9. Where will you order your raw materials? (Amazon, HEB, Kroger, etc.)
  10. What is your overhead (what items make up your overhead)?
  11. Since there are a billion coffee shops, what makes yours different or makes yours stand out? Do you have promotions?

Prepare the statement of cash flows of Company A for the year ended December 31, 2021, using the direct method. Use the additional information from the accounting records below.

/in /by

Cash Flow Statement

Background and Directions

The comparative balance sheets (2021, 2020) and the income statement (2021) for Company A are shown in the spreadsheet.

Use this assignment’s Excel template for completing these tasks. Information for each task is given on the template in the Instructions tab. Use the correct Excel formulas in the cells when calculations are needed as well as formatting.

 

ACG3256fw Module 05 Written Assignment

 

Prepare the statement of cash flows of Company A for the year ended December 31, 2021, using the direct method. Use the additional information from the accounting records below. You may omit the schedule to reconcile net income to cash flows from operating activities. Use the Cash Flow Statement tab for your work and only fill out the yellow cells. Enter the values in thousands. For example, enter 7 for $7000.

  1. A building was sold for $7000. It originally cost $40,000 and was three-fourths depreciated.
  2. The common stock of Company B was purchased for $5,000 as a long-term investment.
  3. Company A acquired property by leasing a note payable to the seller. The terms were $30,000 with a 13% rate for seven years.
  4. New equipment purchased for $15,000 cash.
  5. January 1, 2021: bonds were sold at their $25,000 face value.
  6. January 19: a 5% stock dividend (1,000 shares) issued. The market price was $14 per share for the $10 par value common stock on this day.
  7. Shareholders received cash dividends of $13,000.
  8. November 12: Company A repurchased 500 shares of common stock as treasury stock at the cost of $8,000.

What is the par value of the preferred stock? If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock? If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?

/in /by

MAISTYLE CORPORATION
Balance Sheet (partial)
Stockholders’ equity
Paid-in capital
Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding $900,000
Common stock, no par; 750,000 shares authorized, 600,000 shares issued 1,800,000
Total paid-in capital 2,700,000
Retained earnings 1,158,000
Total paid-in capital and retained earnings 3,858,000
Less: Treasury stock (8,000 common shares) (32,000)
Total stockholders’ equity $3,826,000

Instructions

From a review of the stockholders’ equity section, answer the following questions.

(a) How many shares of common stock are outstanding?

(b) Assuming there is a stated value, what is the stated value of the common stock?

(c) What is the par value of the preferred stock?

(d) If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?

(e) If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?

 

Problem 2. On January 1 Weiss Corporation had 75,000 shares of $0.5 par value common stock issued and outstanding. During the year, the following transactions occurred.

Apr. 1 Issued 8,000 additional shares of common stock for $11 per share.
June 15 Declared a cash dividend of $1.50 per share to stockholders of record on June 30.
July 10 Paid the $1.50 cash dividend.
Dec. 1 Issued 4,000 additional shares of common stock for $12 per share.
Dec. 15 Declared a cash dividend on outstanding shares of $1.70 per share to stockholders of record on December 31.

Instructions

(a) Prepare the entries for the above transactions.

(b) How are dividends and dividends payable reported in the financial statements prepared at December 31?

 

Problem 3. CORPORATE EQUITY TRANSACTIONS

1. Issued 5,000 shares of no-par common stock. The market price of the stock is $12 per share.

2. Issued 2,000 shares of 5%, $100 par, cumulative preferred stock for $122 per share.

3. Declared dividends on preferred dividend of 5% per share.

4. Purchased 500 shares of common stock at $14 for treasury.

5. Paid preferred dividend declared in #3.

6. Sold 100 sharestreasury stock at $20 per share.

Instructions: Journalize the transactions for Fortier Company.

 

Problem 4.  Norris Corporation was organized on January 1, 2021. It is authorized to issue 20,000 shares of 6%, $50 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year.

Jan. 10 Issued 60,000 shares of common stock for cash at $4 per share.
Mar. 1 Issued 12,000 shares of preferred stock for cash at $54 per share.
May 1 Issued 100,000 shares of common stock for cash at $5 per share.
Sept. 1 Issued 5,000 shares of common stock for cash at $8 per share.
Nov. 1 Issued 2,000 shares of preferred stock for cash at $56 per share.

Instructions

(a) Journalize the transactions.

(b) Post to the stockholders’ equity accounts. (Use T accounts.)

(c) Prepare the paid-in capital portion of the stockholders’ equity section at December 31, 2021.

Based on the five-year stock price performance of the companies in the portfolio, as well as other factors like macroeconomic, industry and company analysis, analyze possible reasons for the stock price changes as observed.

/in /by

 ANALYSIS OF PERFORMANCE

 

  1. Choose THREE companies to form a portfolio of The companies can be diversified across different industries or from a single industry. Before making any selection, based from the fundamental information that you gathered from the search (for example the companies’ earnings, stock price historical performance, dividends, earnings per share (EPS), beta etc) you may also want to examine which sector and industry you think will grow more rapidly, hence, will give you more earnings than other sectors. Your selection can be based on the risk characteristics and your preference. Remember one of the finance rules “do not put all eggs in one basket” when selecting companies to include in your portfolio of investment.

 

  1. Write a brief description of each of the companies in your portfolio (including its sector and major competitors).

 

  1. Briefly explain the reasons for choosing the companies as your portfolio of investment:
    • Economic (macroeconomic) analysis (describes the macroeconomic situation in the particular country and its potential influence on the profitability of stocks).
    • Industry analysis (evaluates the situation in the particular industry/ economic sector and its potential influence on the profitability of stocks).
    • Based on your risk attitude (risk averse or risk taker) briefly explain your selection of companies.

 

  1. Record fundamental information about the companies – Company analysis: (create a table for the companies’ financial data):
  • company’s earnings (5-year earnings)
  • stock price historical performance (5-year performance in a chart)
  • dividends (5-year dividend history)
  • earnings per share (latest date)
  • beta (latest date)
  • market capitalization (latest date)
  • total assets (5-year period)
  • capital structure (total liabilities and total equity – 5-year period)

 

5.Assess major systematic and unsystematic risks of the companies. Read the Business section Form 10-K reports for US companies (http://www.sec.gov) – To find information about RISKS.

 

  1. Based on the five-year stock price performance of the companies in the portfolio, as well as other factors like macroeconomic, industry and company analysis, analyze possible reasons for the stock price changes as observed.

 

Prepare: (a) Statement of Comprehensive Income for the year ended 31st March 2022 and (b) Statement of Financial Position as at 31st March 2022.   

/in /by

Financial statement

Assignment 2

  1. On 31st March, 2022 the following Trial Balance was extracted from the books of Mr. Ben.
Debit Balances Rs Credit Balances Rs.
Sundry Debtors  20,100 Capital 28,000
Drawings    3,000 Loan on Mortgage    9,500
Bills receivables    6,882 Rent received       250
Interest on Loan      300 Bill Payable     2,614
Cash at Bank     3,555 Sales 110,243
Motor Van    10,000 Sundry creditors   10,401
Stock on 1st April      6,839 Provision for bad debts       710
Cash in hand      2,050 Return outwards     1,346
Land and building    12,000
General expenses      3,489
Advertising expenses      3,264
Rent, rates and insurance      2,891
Salaries      9,097
Bad debts         525
Purchases     66,458
Return inwards       7,821
Carriage inwards     2,929
Carriage outwards     2,404
Total 163,604 Total 163,604

 

Adjustments:

(i). Closing stock is valued at Rs. 7,250

(ii). Depreciate Land and Building at 2%, Motor van at  15%

(iii). Salaries Rs. 750 and rates Rs. 350 are outstanding.

(iv). Goods costing Rs. 2,000 were taken by proprietor for private use, had been treated as credit      sales.

(v). Prepaid insurance Rs. 270.

(vi). Provision for Bad debts is to be maintained at 5% on Debtors.

(vii). Provide interest on loan on mortgage 8% p.a. for 6 months.

You are required to prepare:

(a). Statement of Comprehensive Income for the year ended 31st March 2022.        (15  Marks)

(b). Statement of Financial Position as at 31st March 2022.    (10 Marks)

 

Total Marks 25)

 

John is divorced and files a tax return claiming his daughter (age 15) and his son (age 19) as dependents. John’s son is a full-time student at a local college. John’s adjusted gross income for 2022 is $212,500. Calculate John’s Child Credit for 2022.

/in /by

Taxes question

The exam consists of ten questions. Each question is worth fifteen points. Show all work on your answer sheets and record your name on your test and all answer sheets. To receive partial credit for incorrect answers your computations must be included with your exam.

  1. Mr. Smith (age 52) is a single individual with adjusted gross income of $122,000 in 2022. Mr. Smith does not itemize. Included in Mr. Smith’s adjusted gross income of $122,000 is a long-term capital gain of $5,000. Compute Mr. Smith’s taxable income and income tax liability for 2022.
  2. Discuss the similarities and differences between the American Opportunity and Lifetime Learning credits
  3. Mr. Smith purchased an operating business for a lump sum of $295,000. The fair market value of the assets acquired was $103,000 for the building, $90,000 for the land, $70,000 for the equipment, and $45,000 for the inventory. Compute Mr. Smith’s basis in the building and the equipment.
  4. Michael is a professional musician who purchased an amplifier system on September 1, 2022, for $22,000. The system is five-year recovery property and was the only asset purchased during the year. Michael elected not to claim section 179 expense or bonus depreciation. Compute the 2022 MACRS depreciation.
  5. Define the following terms:
  • Refundable tax credit
  • Nonrefundable tax credit

6.(a) Mrs. Carson donated stock worth $45,300 to her church in 2022. Mrs. Carson’s adjusted gross income is $81,500 for 2022. If Mrs. Carson sold the stock donated to her church, she would have recognized a long-term capital gain. What is Mrs. Carson’s allowable charitable contribution deduction for 2022?

(b) John donated $56,600 in cash to the United Way in 2022. John’s adjusted gross income is $91,550 for 2022. What is John’s allowable charitable contribution deduction for 2022?

 

  1. John is divorced and files a tax return claiming his daughter (age 15) and his son (age 19) as dependents. John’s son is a full-time student at a local college. John’s adjusted gross income for 2022 is $212,500. Calculate John’s Child Credit for 2022.

 

  1. Mary, a single individual age 39 qualifying for head of household filing status, attended college full-time for 10 months in 2022 on a full scholarship valued at $15,000. While attending college, Mary incurred childcare expenses of $3,500 related to the care of her dependent daughter Sally (age 11). Mary’s only income in 2022 was $30,000 of rental income. Mary did not itemize deductions. Calculate Mary’s tax liability for 2022.

 

  1. Mr. Kane is single (age 28) with no dependents and had adjusted gross income of $42,000 for 2022. His itemized deductions were $7,750 and consisted solely of real estate taxes. Mr. Kane incurred $ 5,000 of education expenses eligible for the American Opportunity education credit. Compute Mr. Kane’s 2022 tax liability.
  2. In 2022, Mr. Smith rented his vacation home for 11 days during the year. Mr. Smith collected $3,800 of rents and incurred $1,200 in expenses during the 11 days rented. What amount of rental income should be included in Mr. Smith’s 2022 taxable income?