Advanced Accounting

College of Administrative and Financial SciencesAssignment 1Deadline: (End of Week 6) 27 /02/ 2021 @ 23:59Course Name:Advanced Financial AccountingStudent’s Name:Course Code: ACCT 302Student’s ID Number:Semester: IICRN:Academic Year: 1441/1442 HFor Instructor’s Use onlyInstructor’s Name:Students’ Grade: /5Level of Marks: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 answered 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.1. Baskin Corporation pays $ 420,000 for Camlin Inc. and that the estimated FMV of Assets, Liabilities and Equity are as follows: (1 Mark)Account Receivable 100,000Inventory 50,000PP & E 200,000Total Assets 350,000Liabilities 70,000Retained Earnings 80,000Common Stock 200,000Liabilities & Equities 350,000Determine the amount of Goodwill.2. Zaid Ltd and Zafar Ltd agreed to merge on January 1, 2019. On the date of the merger agreement, the companies reported the following data: (2 Marks)Balance SheetZaid LtdZafar LtdBook ValueFair ValueBook ValueFair ValueCurrent Assets190,000240,00050,00062,000Long Term Assets600,000500,000300,000275,000Accumulated Depreciation(130,000)(50,000)Total Assets660,000740,000300,000337,000Current Liabilities100,000120,00075,00075,000Common Stock300,00050,000Capital in excess of Par Value40,00010,000Retained Earnings220,000165,000Total Liabilities660,000300,000Zaid 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:3. From the Given information Calculate the Book Value and pass Elimination entry: (2 Marks)1. PQR Ltd owns 75% of STV Ltd.1. STV Ltd ’s net income for 20X4 is SAR 250,0001. PQR Ltd’s net income for 20X4 from its own separate operations is SAR 500,000.1. STV Ltd’s declares dividends of SAR 36,000 during 20X4.1. STV Ltd has 20,000 shares of $5 par stock outstanding that were originally issued at $15 per share.1. STV Ltd’s beginning balance in Retained Earnings for 20X4 is SAR 150,000 for more information on Advanced Accounting check on this:https://en.wikipedia.org/wiki/Accounting