Advanced Accounting-Volume 2

Solutions Manual for use with

VOLUME 2

Advanced ACCOUNTING rinci!les and rocedural A!!lications A!!lications

2"## Edition

edro $ Guerrero %ose &$ eralta

To The Instructor 

This Solutions Manual contains suggested solutions to all the Multiple Choices and Problems for the Advanced Accounting – Principles and Procedural Applications, 2011 dition! Solutions have been prepared b" the authors to ensure accurac" and consistenc" #ith the discussion and illustration in the te$tboo%! Multi!le Choices ' Co(!utational The multiple choices – Computational are designed to cover a variet" of conceptual situations included in each chapter! Solving these should reinforce the student&s %no#ledge of  accounting and also test their understanding of the points covered! 'ou ma" choose to assign selected multiple choices to supplement the problems assigned in each chapter! Most of the multiple choices re(uire a limited amount of computations and are #ell suited for inclusion in (ui))es or e$aminations! ro)le(s 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! &inal Note The Solutions Manual intended to accompan" this edition 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, / ! Ca"co st!, Sampaloc, Metro Manila or "ou ma" email me at ppg3pldtdsl!net!

 P. P. Guerrero  J. F. Peralta

Contents

C*ATE+ #2,

 Home Office and Branch – General Procedures

C*ATE+ #-,

 Home Office and Branch – Special Problems

C*ATE+ #.,

 Business Combination  IF!S " #$%%&'

C*ATE+ #/,

Consolidated Balance Sheet – (ate of )c*uisition

C*ATE+ #0,

Consolidated Financial Statements I)S $+#$%%&'  Subse*uent to  (ate of Purchase T,pe of Business Combination.

C*ATE+ #1,

 Intercompan, Profit Transactions – In-entories

C*ATE+ #,

 Intercompan, Gain Transactions – Plant )ssets

C*ATE+ #3,

 )ccountin for Forein Currenc, Transactions #I)S $/'

C*ATE+ 2",

Translation of Forein Currenc, Financial Statements #I)S $/'

C*ATE+ 2#,

 0e1 Go-ernment )ccountin S,stem for 0ational Go-ernment  )enc, #0G))S'

C*ATE+ 22,

 0onprofit Orani2ations.