Financial Accounting Assignment | Essay Help Services

we need to do the attached requirements

Assessment Three 15%
Semester
:
Spring 2 2020
Year /
:
2019-2020
Course Title
:
Advanced Financial Accounting
Course Code
:
ACT460
Version
:
A
Instructor
:
Dr. Ahmed Yamen
Date
:
Start Time
:
Exam Duration
:
No. of Pages
:
(includes cover page)
(Student Must Verify)
To be completed by the students
Students Name
:
Student ID:
Section
:
Major
:
Grading Scheme
Question
Earned Points
Max. Points
Question
Earned Points
Max. Points
1
6
2
7
3
8
4
9
5
10
Total Earned Points
Total Available Points
Instructor Signature
100
ACT 460- Advanced Financial Accounting – Spring2 2020 P a g e 2 | 3
Question one: 20 marks
Explain the importance of consolidation process
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ACT 460- Advanced Financial Accounting – Spring2 2020 P a g e 3 | 3
Question two : 80 marks (20 marks Each)
On January 1, 20X9, Peery Company acquired 100 percent of Standard Company’s common shares at underlying book value. Peery uses the equity method in accounting for its ownership of Standard. On December 31, 20X9, the trial balances of the two companies are as follows:
Peery Co.
Standard Co.
Item
Debit
Credit
Debit
Credit
Current Assets
$
238,000
$
95,000
Depreciable Assets
300,000
170,000
Investment in Standard Co.
100,000
Other Expenses
90,000
70,000
Depreciation Expense
30,000
17,000
Dividends Declared
32,000
10,000
Accumulated Depreciation
$
120,000
$ 85,000
Current Liabilities
50,000
30,000
Long-Term Debt
120,000
50,000
Common Stock
100,000
50,000
Retained Earnings
175,000
35,000
Sales
200,000
112,000
Income from Standard Co.
25,000
$
790,000
$
790,000
$
362,000
$
362,000
Required:
1- Prepare the journal entry to record the dividends received during year one .
2- Prepare the journal entry to record the effect of income from subsidiary on the parent’s investments.
3- Prepare the consolidation entry necessary to prepare the worksheet at the end of year one.
4- Prepare a schedule to show your book value calculations.