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PROBLEM 30-15 Comprehensive Problem ou are engaged in the first-time audit of the financial statements of Trina Claire Co, which began operations in 2015. The following ratios and other data ertaining to the financial statements of Trina Claire Co. for the year ended December 31, 2016 were provided to you by the company's accountant:

PROBLEM 30-15 Comprehensive Problem ou are engaged in the first-time audit of the financial statements of Trina Claire Co, which began operations in 2015. The following ratios and other data ertaining to the financial statements of Trina Claire Co. for the year ended December 31, 2016 were provided to you by the company's accountant:

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter1: Accounting As A Form Of Communication
Section: Chapter Questions
Problem 1.8AP: Statement of Retained Earnings for Brunswick Corporation Brunswick Corporation reported the...
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PROBLEM 30-15 Comprehensive Problem You are engaged in the first-time audit of the financial statements of Trina Claire Co. which began operations in 2015. The following ratios and other data pertaining to the financial statements of Trina Claire Co. for the year ended December 31, 2016 were provided to you by the company's accountant: From the Statement of Financial Position: Ordinary share capital, P10 par Share premium Retained earnings, 12/31/2016 P1,000,000 500,000 1,800,000 Computed ratios: Basic earnings per share Book value per share P 5 33 Additional information: 1) The 2015 ending inventory was overstated by 50,000. 2) Accrued expenses at the end of 2016 amounting to 30,000 were not recorded. 3) Sale of merchandise on account in 2015 for P45,000 was erroneously recorded in 2016. 4) One year insurance premium of P48,000 effective August 1, 2015 were charged to expense in 2015. 5) Accrued interest on note receivable at the end of 2015 in the amount P5,000 was not taken up at yearend. 6) Unearned rent at the end of 2016 was understated by 20,000. 7) Sales on account in 2016 includes interest income of P1,000. 8) Collection of accounts receivable for 2,800 was not recorded at the end of 2016. 9) No share issuance was made during the year. Q1: Net Income 2016? Q2: Retained earnings 12/31/2016? Q3: Earnings per share 2016? Q4: Total SHE 2016? Q5: Book Value per share 2016?
Transcribed Image Text:PROBLEM 30-15 Comprehensive Problem You are engaged in the first-time audit of the financial statements of Trina Claire Co. which began operations in 2015. The following ratios and other data pertaining to the financial statements of Trina Claire Co. for the year ended December 31, 2016 were provided to you by the company's accountant: From the Statement of Financial Position: Ordinary share capital, P10 par Share premium Retained earnings, 12/31/2016 P1,000,000 500,000 1,800,000 Computed ratios: Basic earnings per share Book value per share P 5 33 Additional information: 1) The 2015 ending inventory was overstated by 50,000. 2) Accrued expenses at the end of 2016 amounting to 30,000 were not recorded. 3) Sale of merchandise on account in 2015 for P45,000 was erroneously recorded in 2016. 4) One year insurance premium of P48,000 effective August 1, 2015 were charged to expense in 2015. 5) Accrued interest on note receivable at the end of 2015 in the amount P5,000 was not taken up at yearend. 6) Unearned rent at the end of 2016 was understated by 20,000. 7) Sales on account in 2016 includes interest income of P1,000. 8) Collection of accounts receivable for 2,800 was not recorded at the end of 2016. 9) No share issuance was made during the year. Q1: Net Income 2016? Q2: Retained earnings 12/31/2016? Q3: Earnings per share 2016? Q4: Total SHE 2016? Q5: Book Value per share 2016?
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