ACC 407 Week 2

ACC 407 Week 2 Quiz

Assignment

Part One.

Review the financial information pertaining to the Yugo Companys Ryble Branch in problem 4.4 on page 156 of your text. Prepare the following (include any applicable supporting computations in the explanations):

1. Assuming that all other transactions and events have been recorded properly, prepare a working paper to compute the unadjusted balance of the Home Office ledger account in the accounting records of Yugo Companys Ryble Branch on December 31, 2005.

2. Prepare journal entries for the home office of Yugo Company on December 31, 2005, to bring its accounting record up to date. Closing entries have not been made.

3. Prepare journal entries for Ryble Branch of Yugo Company on December, 31 22005, to bring its accounting records up to date.

4. Prepare a reconciliation on December 31, 2005, of:

a. The investment in Ryble Branch ledger account in the accounting records of the Home Office.

b. The Home Office account in the accounting records of Ryble Branch of Yugo Company.

Use a single column for each account and start with the unadjusted balances.

Part Two:

Review the financial information pertaining to the Combinor Corporation on page 199 of your text. Prepare journal entries for Combinor Corporation on October 31, 2005, to record the business combination with Combinee Company. (Disregard income taxes and include any applicable supporting computations in the explanations.)

Written Assignment

The Financial Accounting Standards Board (F.A.S.B.) completed its project on Business Combinations: Applying the Acquisition Method in December 2007 with the issuance of two F.A.S.B. Statements: No. 141 (Revised 2007) Business Combinations and No. 160 Non-controlling Interests in Consolidated Financial Statements.

F.A.S.B. Statement No. 141 (http://www.fasb.org/st/summary/stsum141.shtml)

F.A.S.B. Statement No. 160 (http://www.fasb.org/st/summary/stsum160.shtml)

Review these statements and prepare a two- to four-page paper formatted according to APA style summarizing the position of the F.A.S.B. as presented in the two statements, and presenting any implications and issues surrounding Business Combinations.

Discussion Questions

Branches. Complete Cases 4.3 (page 152) and 4.4 (page 153) and post the answers. Remember to complete all parts of the problems and report the results of your analysis. Do not forget to show the necessary steps and explain how your attained that outcome.

Combinations. Complete Cases 5.2 (page 193) and 5.3 (page 194) and post the answers. Remember to complete all parts of the problems and report the results of your analysis.