Advanced Accounting-Volume 2

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Solutions Manual

For use with

Advanced Accounting
Volume 2

A Procedural Approach
2008 Edition
P.P. Guerrero !.F. Peralta

To The Instructor This Solutions Manual contains suggested solutions to all the Multiple Choice and Problems for the 2008 edition of Advanced Accounting A Procedural Approach. All solutions have been prepared b the authors to ensure accurac and consistenc !ith the discussion and illustration in the te"tboo#. Multiple "hoices The multiple choices are designed to cover a variet of conceptual situations included in each chapter. Solving these should reinforce the student$s #no!ledge of accounting and also test their understanding of the points covered. %ou ma choose to assign selected multiple choices to supplement the problems assigned in each chapter. Most of the multiple choices re&uire a limited amount of computations and are !ell suited for inclusion in &ui''es or e"aminations. Pro#lems Problems have been provided at the end of each chapter more than ou can reasonabl use in a single offering of the course. This abundance of problems allo!s ou to var problem assignments in different sections of the course( or from semester to semester( and to choose these problems that best fit the scope( level and emphasis of our course. Final $ote The Solutions Manual intended to accompan the )evised 2008 *dition of Advanced Accounting A Procedural Approach had been prepared carefull and revie!ed thoroughl to ensure that the instructors !ho adopt this te"tboo# are provided !ith all possible assistance in ma#ing their course effective. +n the final anal sis( ho!ever( an given course is shaped primaril b the person !ho teaches it( and the success of our efforts !ill be proven through e"tensive e"perience in the classroom. ,e !ill appreciate an comments and suggestions from ou no matter ho! minor the point involved. Please address correspondence to Pedro P. -uerrero( CPA) .uilding( 8/0 1. Ca co st.( Sampaloc( Metro Manila or ou ma email me at ppg2pldtdsl.net.

P. P. Guerrero J. F. Peralta

Contents

"%AP&E' (2) "%AP&E' (*) "%AP&E' (+) "%AP&E' (,) "%AP&E' (-) "%AP&E' (.) "%AP&E' (8) "%AP&E' (/) "%AP&E' 20) "%AP&E' 2() "%AP&E' 22)

Home Office and Branch General Procedures Home Office and Branch Special Problems Business Combination PF!S "# Consolidated Balance Sheet $ate of %c&uisition Consolidated Financial Statements P%S '(# ) Subse&uent to$ate of Purchase T*pe of Business Combination. Inter)comp an* Profit Transactions In+entories Inter)compan* Gain Transactions Plant %ssets %ccountin, for Forei,n Currenc* Transactions Translation of Forei,n Currenc* Financial Statements -e. Go+ernment %ccountin, S*stem for -ational Go+ernment %,enc* -onprofit Or,ani/ations.

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