FINAL SEMESTER EXAMINATION

Academic Year 2022 – 2023 / even Semester (20222)

Subject : Advanced Accounting

Lecturer : Ery Yanto

Study Program : Accounting

Instructions to Students

1. This examination consists of 3 pages and 3 questions.

2. Time allowed for this examination is 2 hours.
3. Sanctions will be given to those students who are not following the examination rules.
4. All answers to be written in answer sheet provided. The number to the corresponding
question must be written correctly.
5. Students are to use proper English and are required to write neatly and clearly.
6. This is a closed book examination.
7. Students are allowed to use calculator.
8. Students are allowed to use any dictionary.
9. Students need to turn off any communication devices.
10. Students are not allowed to use electronic devices or borrow any equipment, etc. from
fellow students, nor can they communicate with each other while the examination is
going on.
11. Students are allowed to use blue or black ink. Do not use pencil.

Questions:

1. Matrix Corp. filed under chapter 7 bankruptcy on August 1, 2022 and reported the
following: (in US$)
Book Value Estimated Net Realizable
Value
Cash and equivalents 700,000 700,000
Accounts receivable 300,000 250,000
Inventories 400,000 250,000
Land 600,000 550,000
Buildings – net 550,000 200,000
Equipment – net 400,000 50,000
Total assets 2,750,000 2,000,000

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 Book Value Estimated Net Realizable
Value

Accounts payable 400,000

Wages payable 300,000
Bond payable – secured by fixed assets 1,000,000
Interest payable (related to bond payable) 250,000
Commons stock 1,100,000
Retained earnings (300,000)
Total liabilities and equity 2,750,000

Required:
Prepare statement of affairs.
(35 Marks)

2. Peake Corporation, a US company, formed a British subsidiary on January 1, 2022 by

investing £450,000 in exchange for all of the subsidiary’s no-par common stock. The British
subsidiary, Searle Corporation, purchased real property on April 1, 20X5 at a cost of
£500,000, with £100,000 allocated to land and £400,000 allocated to a building. The
building is depreciated over a 40-year estimated useful life on a straight-line basis with no
salvage value. The British pound is Searle’s functional currency and its reporting currency.
The British economy does not have high rates of inflation. Exchange rates for the pound on
various dates were:

January 01, 20X5 = 1£ = $1.53

April 01, 20X5 = 1£ = $1.55

December 31, 20X5 = 1£ = $1.59

20X5 average rate = 1£ = $1.60

Searle's adjusted trial balance is presented below for the year ended December 31, 2022.

Debits: in £
Cash 220,000
Accounts receivables 52,000
Inventory 59,000
Building 400,000
Land 100,000
Depreciation expense 7,500
Other expenses 110,000
Cost of good sold 220,000
Total debits £1,168,500

Credits:
Accumulated depreciation 7,500
Accounts payable 111,000

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Common stock 450,000
Sales revenue 600,000
Total credits £1,168,500

Required: Prepare Searle's:

a. Translation working papers;
b. Translated income statement; and
c. Translated balance sheet.

(30 Marks)

3. The following information was taken from the accounts and records of the Archive
Foundation, a private, not-for-profit organization. All balances are as of June 30, 2015,
unless otherwise noted.

Unrestricted Support - Contributions $4,000,000

Unrestricted Support - Membership Dues 700,000
Unrestricted Revenues - Investment Income 76,000
Temporarily restricted gain on sale of investments 19,000
Expenses - Research 2,500,000
Expenses - Fund Raising 400,000
Expenses - Management and General 500,000

Restricted Support - Contributions 600,000

Restricted Revenues - Investment Income 40,000
Permanently Restricted Support - Contributions 70,000
Unrestricted Net Assets, July 1, 2014 450,000
Temporarily Restricted Net Assets, July 1, 2014 2,500,000
Permanently Restricted Net Assets, July 1, 2014 60,000

Additional information:
The unrestricted support from contributions was received in cash during the year.
During the year, there is reclassification from restricted to unrestricted with amount
$1,000,000, because the term and condition for unrestricted has been meet.

Required:
Prepare Archive's statement of activities for the fiscal year ended June 30, 2015.
(35 Marks)

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