Preview

AP 5901Q SHE

Powerful Essays
Open Document
Open Document
1688 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
AP 5901Q SHE
Page 1 of 5

CPA REVIEW SCHOOL OF THE PHILIPPINES
Manila

AUDITING PROBLEMS
AUDIT OF STOCKHOLDERS’ EQUITY - QUIZZERS
PROBLEM NO. 1
Resolve Corporation began operations on January 1, 2005. The company was authorized to issue 60,000 shares of P10 par value common stock and 120,000 shares of
10%, P100 par value convertible preferred stock.
In connection with your audit of the company’s financial statements, you noted the following transactions involving stockholders’ equity during 2005:
Jan.

1

Issued 1,500 shares of common stock to the corporation promoters in exchange for property valued at P510,000 and services valued at
P210,000. The property costs P270,000 3 years ago and was carried on the promoters’ books at P150,000.

Jan. 31

Issued 30,000 shares of convertible preferred stock at P150 per share.
Each share can be converted to five shares of common stock. The corporation paid P225,000 to an agent for selling the shares.

Feb. 15

Sold 9,000 shares of common stock at P390 per share. The corporation paid issue costs of P75,000.

May 30

Received subscriptions for 12,000 shares of common stock at P450 per share. Aug. 30

Issued 2,100 shares of common stock and 4,200 shares of preferred stock in exchanged for a building with a fair market value of P1,530,000.
The building was originally purchased for P1,140,000 by the investors and has a book value of P660,000. In addition, 1,800 shares of common stock were sold for P720,000 cash.

Nov. 15

Payments in full for half of the subscriptions and partial payments for the rest of the subscriptions were received. Total cash received was
P4,200,000. Shares of stock were issued for the fully paid subscriptions.

Dec.

Declared a cash dividend of P10 per share on preferred stock, payable on December 31 to stockholders of record on December 15, and P20 per share cash dividend on common stock, payable on January 15, 2006 to stockholders of record on December 15.

1

Dec. 31

Paid the preferred stock dividend.
Net income for

You May Also Find These Documents Helpful

  • Good Essays

    Bsbpmg510A Kbq

    • 635 Words
    • 3 Pages

    Project Manager – To overlook the whole project, delegate and ensure each team is meeting their required milestones…

    • 635 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Case 3 Compensation

    • 213 Words
    • 1 Page

    employee share options on January 1, 2010. The awards have a grant-date fair value of…

    • 213 Words
    • 1 Page
    Satisfactory Essays
  • Best Essays

    F Williams MKTG340 U2IP

    • 1434 Words
    • 2 Pages

    edited for mass media play. These two also has its differences one relies on facts while the other…

    • 1434 Words
    • 2 Pages
    Best Essays
  • Powerful Essays

    Hltap501A

    • 3110 Words
    • 13 Pages

    The following assignment will discuss essential nursing processes to obtain information from a client to identify health problems or potential health problems and to gather and document information to use in the contribution of care planning for a client in a variety of health care settings. The case study involves Mrs Blow, an elderly patient who has a variety of health issues and requirements, that need to be implemented in hospital and on her return home for optimal health and…

    • 3110 Words
    • 13 Pages
    Powerful Essays
  • Satisfactory Essays

    qnt351

    • 384 Words
    • 2 Pages

    “Question A” asks “In which division you work?” stats show that the food and housekeeping employees fairly represented the survey; however, stats show that only 12% maintenance department represented the survey. The management team must keep in mind that the survey produced only a 17.3% response from employees, therefore it is most reasonable to believe that the maintenance department had the largest non-response rate.…

    • 384 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Bsbhrm504A

    • 882 Words
    • 4 Pages

    Skilled Occupation List is a list of occupations which are currently acceptable for immigration to Australia. Occupations are divided into separate categories such as professionals, managers, traders etc.…

    • 882 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Final Exam Review

    • 1356 Words
    • 6 Pages

    Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $13,500. The common stock has a market price of $20 per share, and the preferred stock has a market price of $90 per share. Prepare journal entry.…

    • 1356 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Amba 610

    • 2992 Words
    • 12 Pages

    Organizations globally invest a lot of resources in advertising, recruiting strategies, and tactics to attract the best candidates available in their field. This process of identifying and implementing formal assessments methods to select potential employees is complex, but essential in creating value for the company and shareholders (Bagley& Savage, 2010). Selecting the right employee and the process of continued motivation through performance appraisal are important in organizations efficiency and effective use of employees. Organizations have many options to utilize while screening for employees. Screening strategies choices not only assist with efficiency, but also match people with the job. Tools that organizations can utilize are job applications, resumes, interviews, background, reference checks, personality testing, drug screening, honesty and integrity test and a host of other procedures (Wright, Domagakski, & Collins, 2011). Performance appraisal is the systematic evaluation of the performance of employees and helps understand the abilities of a person for further growth and development (MSG, 2012). Appraisals are designed to help employees understand their roles, objectives, expectations, and performance success (Bohlander…

    • 2992 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    Apus Anth100

    • 313 Words
    • 2 Pages

    Cultural Relativity- Studying another culture from its point of view without imposing our own cultural values.…

    • 313 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Ac555

    • 307 Words
    • 2 Pages

    * All of these issues come down to the familiar distinction between utility and rights.…

    • 307 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    CJHS430

    • 637 Words
    • 3 Pages

    When a competent patient designates a trusted loved-one to make treatment decisions for him or her. (De Bord, 2014)…

    • 637 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Inta 1200

    • 978 Words
    • 4 Pages

    This may explain why Americans hate Congress as a whole but love their own senators and representatives…

    • 978 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Mci Case

    • 261 Words
    • 2 Pages

    c2) $1 billion of a unit package consisting of a $1000 7 ½, 10 year subordinated debenture and 18.18 warrants, each entitling the holder to purchase one share of MCI common stock for 55$. The warrants would be exercisable until 1988 and are callable. The exercisei price of the warrants would be payable either in cash or by surrender of the debentures valued at their principal amount.…

    • 261 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Itech 5401

    • 1034 Words
    • 5 Pages

    Individual Student Assignment Weighting: 30% Due Date: Refer to course description. Submission: Submit your report on Moodle – use a zip file format if necessary. Your lecturer will inform you if a paper copy is required and provide you with details. Assignment Topic: Select one or more key issues concerning communicating as professionals and discuss in detail how it relates to practise in a particular field. (For example, journalists, lawyers, teachers and IT professionals) Description of Assignment: Students will prepare a 2000 - 2500 word report (approximately 10 pages doublespaced, not including references). The assignment is to be completed individually. This is NOT a group assignment. The purpose of this assignment is to enable students to evaluate professional communication aspects within an industry in relation to the various elements covered, and to demonstrate the ability to communicate the key issues through a written report. (Please refer to the marking schedule for the structure of your report) Research the topic using books, journals and reputable websites. As a minimum, your research should include at least two (2) books (may be online books), at least two (2) journal articles (may be online journal articles) and at least two (2) internet sites (general websites), total 6 sources, all of which are used to provide you with the background for your report. This topic is very broad and you should show only the aspects of the topic which form the focus of your report. The report will be based on the critical reading of a wide range of resources as described in the previous paragraph. It is expected that the report will provide a balanced view of the issues discussed. In other words, contrary opinions, concerning each issue discussed, will need to be addressed. Create a report title that highlights the specific focus of your response.…

    • 1034 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Metapath Case Report

    • 931 Words
    • 4 Pages

    RSC and TCV consortium offered to buy $11.75 million of stock at a $76 million pre-money valuation (“Series E Preferred”). The proposed stock instrument was a participating convertible stock (“PCPT”). This instrument functions the same as the convertible preferred stock in the event of a qualified public offering whereas in the event of a sale, RSC and TCV consortium not only receives the face value of the consideration, but also gets the equity participation.…

    • 931 Words
    • 4 Pages
    Powerful Essays