PROBLEM 30-15 Comprehensive ProblemYou are engaged in the first-time audit of the financial statements of Trina ClaireCo. which began operations in 2015. The following ratios and other datapertaining to the financial statements of Trina Claire Co. for the year endedDecember 31, 2016 were provided to you by the company's accountant:From the Statement of Financial Position:Ordinary share capital, P10 parShare premiumRetained earnings, 12/31/2016P1,000,000500,0001,800,000Computed ratios:Basic earnings per shareBook value per shareP 533Additional information:1) The 2015 ending inventory was overstated by 50,000.2) Accrued expenses at the end of 2016 amounting to 30,000 were notrecorded.3) Sale of merchandise on account in 2015 for P45,000 was erroneouslyrecorded in 2016.4) One year insurance premium of P48,000 effective August 1, 2015 werecharged to expense in 2015.5) Accrued interest on note receivable at the end of 2015 in the amountP5,000 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 of2016.9) 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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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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.

Question

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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