ACCT 302 Saudi Electronic University Intercompany Transactions Worksheet


1 attachmentsSlide 1 of 1attachment_1attachment_1

Unformatted Attachment Preview

• The Assignment must be submitted on Blackboard (WORD format only) via allocated
• 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. The following intercompany transactions occurred during the year:
• Parent loaned $12500 to Sub. To keep things simple, assume that there is
no interest revenue or interest expense associated with this loan.
• Parent made a sale to Sub for $13000 cash. The inventory had originally
cost Parent $12220. Sub then sold that same inventory to an outsider for
• Parent made a sale to Sub for $15000 cash. The inventory had originally
cost Parent $11280. Sub has not yet sold that same inventory to an
outsider. (Don’t forget equity method entry!)
Based on our “conceptual discussion,” what consolidation worksheet entries
would you make?
(2 Marks)
2. Give two examples of Arm’s Length Transactions and Three Examples of Non
Arm’s Length Transactions.
(1 Mark)
3. Find the indirect exchange rates on the two dates and show the impact of
changes in exchange rates on Imports and Exports.
Direct Exchange Rate
(2 Marks)
January, 2010
January 2011
SAR 3.75
SAR 3.50
Describe the followings in your own words: (2marks)
What is Fair Value Accounting?
What Is Fair Market Value Accounting? How the FASB is going to standardize the
calculation of financial instruments by looking at their historical cost?
What do you mean by loan loss provision? Why Does a Loan Loss Provision Matter? And
how does a loan loss provision work? (1.5 mark)
How to differentiate liquid risk and Credit Risk with reference to the financial economics
sector and how the interest rate risk make an impact on the economy? (1.5mark)

Purchase answer to see full

Explanation & Answer:

User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.

Reviews, comments, and love from our customers and community:

This page is having a slideshow that uses Javascript. Your browser either doesn't support Javascript or you have it turned off. To see this page as it is meant to appear please use a Javascript enabled browser.

Peter M.
Peter M.
So far so good! It's safe and legit. My paper was finished on time...very excited!
Sean O.N.
Sean O.N.
Experience was easy, prompt and timely. Awesome first experience with a site like this. Worked out well.Thank you.
Angela M.J.
Angela M.J.
Good easy. I like the bidding because you can choose the writer and read reviews from other students
Lee Y.
Lee Y.
My writer had to change some ideas that she misunderstood. She was really nice and kind.
Kelvin J.
Kelvin J.
I have used other writing websites and this by far as been way better thus far! =)
Antony B.
Antony B.
I received an, "A". Definitely will reach out to her again and I highly recommend her. Thank you very much.
Khadija P.
Khadija P.
I have been searching for a custom book report help services for a while, and finally, I found the best of the best.
Regina Smith
Regina Smith
So amazed at how quickly they did my work!! very happy♥.