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College of Administration and Finance Sciences Assignment (2) Deadline: May 4, 2024 @ 23:59 Course Name: Advanced Financial Student’s Name: Accounting Course Code: ACCT 302 Student’s ID Number: Semester: Second Semester CRN: 24922 Academic Year: 1445 H For Instructor’s Use only Instructor’s Name: Dr. Mohammed Arshad Khan 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. 1 College of Administration and Finance Sciences Assignment Question(s): Three Questions Each Carries 5 Marks) (total Marks 15) Q1. The following information extracted from the parent company a. Parent company loaned $1000 to Subsidiary with an interest rate of 5%. b. Parent company made a sale to Subsidiary for $500 cash. The inventory had originally cost Parent company $200. Subsidiary then sold that same inventory to an outsider for $700. c. Parent company made a sale to Sub for $800 cash. The inventory had originally cost Parent $300. Subsidiary has not yet sold that same inventory to an outsider. Required: Pass the elimination entries for the intercompany transactions. Answer: Q2. Explain the differences between translation and remeasurement of financial statements of a foreign subsidiary. Answer: Q3. The partnership of Ibrahim and Rawan has the following provisions: • Ibrahim and Rawan receive salary allowances of SAR 50,000 and SAR 15,000, respectively. • Interest is imputed at 5% on the average capital investment. • Any remaining profit or loss is shared between Ibrahim and Rawan in a 3:1 ratio, respectively. • Average Capital investments: Ibrahim, SAR 300,000; Rawan, SAR 150, 000 • Net income SAR 300,000 Required: pass journal entry to allocate the profit between Ibrahim and Rawan 2