ACC 407 Week 5 Assignment 11.3, 12.7, 13.5

Part One:

Review the financial information pertaining to Zonal Corporation and Iberia Company in problem 11.3 on page 500 of your text. Prepare the following (Note that the two parts are unrelated.):

1. Prepare journal entries (omit explanations) for Zonal Corporation on November 19, November 30, and December 19, 2005.

2. Prepare journal entries (omit explanations) for Iberia Company to record the June 30, 2005, sale, under the perpetual inventory system, and the Augusts 29, 2005, conversion of the foreign customers LCU7,650,000 draft to U.S. dollars.

Part Two:

Review the financial information pertaining to Draco Company in problem 13.5 on page 603 of your text. Prepare the following (include any applicable supporting computations in the explanations):

1. Prepare an income statement for Draco Company for the year ended December 31, 2006. Disregard earnings per share data and notes to financial statements.

2. Prepare a journal entry for Draco Companys income taxes on December 31, 2006, with appropriate intraperiod tax allocation.