Problem 4 You have been assigned to the audit of Belcore, Inc. a manufacturing company. You have been asked to summarize the transactions for the year ended December 31, 2022 affecting shareholders' equity and other related accounts. The shareholders' equity section of Belcore's December 31, 2021 statement of financial position follows: Shareholders' Equity Contributed Capital Ordinary share, P2 par, 200,000 shares authorized, 90,000 shares issued; 88,790 shares outstanding Share premium Share premium from treasury shares Total contributed capital Retained Earnings Total contributed capital and retained earnings Less: Cost of Treasury Shares, 1,210 shares Total Shareholders' Equity You have extracted the following information from the accounting records and audit working papers: 2022 Jan. 15 Feb. 2 Mar. 6 Mar. 20 Nov. 3 180,000 1,820,000 22,500 2,022,500 324,689 2,347,189 72,600 2,274,589 Belcore issued 650 shares of treasury stock for P40 per share. The 1,210 shares of treasury stock on hand at December 31, 2021 were purchased in one block in 2021. Sold 90 P1,000 bonds due February 1, 2021 at 103 with one detachable share warrant attached to each bond. Interest is payable annually on February The fair market of the bonds without warrants is 97. The company follows the policy of allocating the issue price first to the bonds at market value, and the remainder to the share warrants. The detachable warrants have a fair value of P60 and expire on February 1, 2023. Each warrant enables the holder to purchase 10 ordinary shares at P40 per share. Subscriptions for 1,400 shares were received at P44 per share, payable 40% down and the balance by March 20. Compute for the adjusted balances of the following at December 31, 2022: The remaining number of shares was declared delinquent. Cost of advertising the delinquent shares was P800. The amount due from the highest bidder was collected and the shares were accordingly issued. 55 share warrants were exercised.
Problem 4 You have been assigned to the audit of Belcore, Inc. a manufacturing company. You have been asked to summarize the transactions for the year ended December 31, 2022 affecting shareholders' equity and other related accounts. The shareholders' equity section of Belcore's December 31, 2021 statement of financial position follows: Shareholders' Equity Contributed Capital Ordinary share, P2 par, 200,000 shares authorized, 90,000 shares issued; 88,790 shares outstanding Share premium Share premium from treasury shares Total contributed capital Retained Earnings Total contributed capital and retained earnings Less: Cost of Treasury Shares, 1,210 shares Total Shareholders' Equity You have extracted the following information from the accounting records and audit working papers: 2022 Jan. 15 Feb. 2 Mar. 6 Mar. 20 Nov. 3 180,000 1,820,000 22,500 2,022,500 324,689 2,347,189 72,600 2,274,589 Belcore issued 650 shares of treasury stock for P40 per share. The 1,210 shares of treasury stock on hand at December 31, 2021 were purchased in one block in 2021. Sold 90 P1,000 bonds due February 1, 2021 at 103 with one detachable share warrant attached to each bond. Interest is payable annually on February The fair market of the bonds without warrants is 97. The company follows the policy of allocating the issue price first to the bonds at market value, and the remainder to the share warrants. The detachable warrants have a fair value of P60 and expire on February 1, 2023. Each warrant enables the holder to purchase 10 ordinary shares at P40 per share. Subscriptions for 1,400 shares were received at P44 per share, payable 40% down and the balance by March 20. Compute for the adjusted balances of the following at December 31, 2022: The remaining number of shares was declared delinquent. Cost of advertising the delinquent shares was P800. The amount due from the highest bidder was collected and the shares were accordingly issued. 55 share warrants were exercised.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
PROBLEM 4.1 - AUDITING PROBLEMS
Compute for the following:
4. Ordinary Share Warrants Outstanding
5. Treasury Shares
Transcribed Image Text:Problem 4
You have been assigned to the audit of Belcore, Inc. a manufacturing company. You have been asked to summarize the transactions for the year ended
December 31, 2022 affecting shareholders' equity and other related accounts. The shareholders' equity section of Belcore's December 31, 2021 statement of
financial position follows:
Shareholders' Equity
Contributed Capital
Ordinary share, P2 par, 200,000 shares authorized, 90,000 shares issued; 88,790 shares outstanding
Share premium
Share premium from treasury shares
Total contributed capital
Retained Earnings
Total contributed capital and retained earnings
Less: Cost of Treasury Shares, 1,210 shares
Total Shareholders' Equity
You have extracted the following information from the accounting records and audit working papers:
2022
Jan. 15
Feb. 2
Mar. 6
Mar. 20
Nov. 3
180,000
1,820,000
22,500
2,022,500
324,689
2,347,189
72,600
2,274,589
Belcore issued 650 shares of treasury stock for P40 per share. The 1,210 shares of treasury stock on hand at December 31, 2021 were purchased
in one block in 2021.
Sold 90 P1,000 bonds due February 1, 2021 at 103 with one detachable share warrant attached to each bond. Interest is payable annually on February
The fair market of the bonds without warrants is 97. The company follows the policy of allocating the issue price first to the bonds at market value,
and the remainder to the share warrants. The detachable warrants have a fair value of P60 and expire on February 1, 2023. Each warrant enables
the holder to purchase 10 ordinary shares at P40 per share.
Subscriptions for 1,400 shares were received at P44 per share, payable 40% down and the balance by March 20.
The remaining number of shares was declared delinquent. Cost of advertising the delinquent shares was P800. The amount due from the highest
bidder was collected and the shares were accordingly issued.
55 share warrants were exercised.
Compute for the adjusted balances of the following at December 31, 2022:
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