Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Chapter 15, Problem 37P
a.
To determine
Provide the necessary adjusting
b.
To determine
Prepare the
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You are engaged in the audit of Phoenix Corp., a new client, at the close of its first fiscal year, April 30, 20X1. The accounts had been closed before the time you began your year-end fieldwork.You review the following stockholders€™ equity accounts in the general ledger:
other information in your working papers include the following:
1. Phoenix's articles of incorporation filed April 17, 20X0, authorized 100,000 shares of non-par-value capital stock.
2. Directors minutes include the following resolutions:
4/18/X0 Established $50 per share stated value for capital stock.
4/30/X0 Authorized issue of 10,000 shares to an underwriting syndicate for $75 per share.
9/13/X0 Authorized acquisition of 1,000 shares from a dissident holder at $80 per share.
2/1/X1 Authorized reissue of 500 treasury shares at $85 per share.
4/28/X1 Declared 10 percent stock dividend, payable May 18, 20X1, to stockholders of record May 4, 20X1.
3. The following costs of the May 1, 20X0, and February 2, 20X1,…
You are engaged to perform the first audit of the Torrents Company for the year ended December 31, 2022. You find the following account balances related to shareholders' equity:
Preference shares, P100 par
P3,000,000
Ordinary Shares, P10 par
6,500,000
Capital Surplus
(1,640,000)
Retained Earnings
15,000,000
Due to the antiquated terminology and negative balance, you examine the Capitak Surplus account first and find in it the following entries:
Credit/(Debit)
Premium on Ordinary Shares
P2,710,000
Capital from donated land
1,600,000
Treasury shares (50,000 ordinary shares at cost)
(750,000)
Premium on Preference Shares
300,000
Appropriation for contingencies
2,500,000
Share dividend issued (50%)
(2,000,000)
Prior period adjustment (net of income taxes)
(1,200,000)
Loss from the fire (uninsured), 2022
(1,800,000)
Property dividend distributed
(600,000)
Cash dividends declared to be paid in 2023
(2,400,000)
Balance
(P1,640,000)
Your examination of…
You are engaged to perform the first audit of the Torrents Company for the year ended December 31, 2022. You find the following account balances related to shareholders' equity:
Preference shares, P100 par
P3,000,000
Ordinary Shares, P10 par
6,500,000
Capital Surplus
(1,640,000)
Retained Earnings
15,000,000
Due to the antiquated terminology and negative balance, you examine the Capitak Surplus account first and find in it the following entries:
Credit/(Debit)
Premium on Ordinary Shares
P2,710,000
Capital from donated land
1,600,000
Treasury shares (50,000 ordinary shares at cost)
(750,000)
Premium on Preference Shares
300,000
Appropriation for contingencies
2,500,000
Share dividend issued (50%)
(2,000,000)
Prior period adjustment (net of income taxes)
(1,200,000)
Loss from the fire (uninsured), 2022
(1,800,000)
Property dividend distributed
(600,000)
Cash dividends declared to be paid in 2023
(2,400,000)
Balance
(P1,640,000)
Your examination of…
Chapter 15 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 15 - What does the trust indenture used by a...Ch. 15 - Long-term creditors often insist upon placing...Ch. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQ
Ch. 15 - Mansfield Corporation has outstanding an issue of...Ch. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - What do you consider to be the most important...Ch. 15 - What is the primary responsibility of an...Ch. 15 - In the audit of a small corporation that issues...Ch. 15 - Prob. 17RQCh. 15 - Prob. 18RQCh. 15 - Prob. 19RQCh. 15 - Corporations sometimes issue their own capital...Ch. 15 - Prob. 21RQCh. 15 - Prob. 22RQCh. 15 - Prob. 23RQCh. 15 - Prob. 24RQCh. 15 - Prob. 25RQCh. 15 - Prob. 26RQCh. 15 - Prob. 27QRACh. 15 - Prob. 28QRACh. 15 - Prob. 29QRACh. 15 - You are retained by Columbia Corporation to audit...Ch. 15 - Prob. 31QRACh. 15 - Prob. 32AOQCh. 15 - Prob. 32BOQCh. 15 - Prob. 32COQCh. 15 - Prob. 32DOQCh. 15 - Prob. 32EOQCh. 15 - When a client uses paper stock certificates, an...Ch. 15 - Prob. 32GOQCh. 15 - The auditors can best verify a clients bond...Ch. 15 - Prob. 32IOQCh. 15 - All corporate capital stock transactions should...Ch. 15 - Prob. 32KOQCh. 15 - Prob. 32LOQCh. 15 - Prob. 32MOQCh. 15 - Prob. 32NOQCh. 15 - Prob. 32OOQCh. 15 - An auditor most likely would inspect loan...Ch. 15 - Prob. 32QOQCh. 15 - Match the following definitions (or partial...Ch. 15 - Prob. 34PCh. 15 - Prob. 35PCh. 15 - Prob. 36PCh. 15 - Prob. 37P
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