Scribd
Upload
126 views

Auditing Problem Quiz 2 Long Problem Solutions

The document contains journal entries recording various share capital transactions from January 5 to December 31, including the issuance of ordinary shares, preference shares, bonds, treasury shares, and dividends. It also records donations, retained earnings, and an income summary entry at the end of the year.

Uploaded by

reina maica terrado
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
126 views

Auditing Problem Quiz 2 Long Problem Solutions

The document contains journal entries recording various share capital transactions from January 5 to December 31, including the issuance of ordinary shares, preference shares, bonds, treasury shares, and dividends. It also records donations, retained earnings, and an income summary entry at the end of the year.

Uploaded by

reina maica terrado
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 7

AUDITING PROB

JOURNAL ENTRIES

5-Jan Cash 85,000.00


Ordinary Shares Capital 50,000.00
Share Premium 35,000.00

10-Feb Preference Shares 600,000.00


Share Premium - Pref Shares 240,000.00
Cash 840,000.00

10-Mar Cash 800,000.00


Subscription Receivable 800,000.00

Subscribed Share Capital 1,000,000.00


Ordinary Share Capital 1,000,000.00

6-Apr Cash 1,236,000.00


Discount on Bonds 36,000.00
Bonds Payable 1,200,000.00
Share Warrants 72,000.00

15-May Cash 120,000.00


Share Premium - TS 20,000.00
Retained Earnings 40,000.00
Treasury Shares 180,000.00

8-Jun Memo

16-Jul Ordinary Share Capital 150,000.00


Share Premium - Ordinary Shares 120,000.00
Treasury Shares 270,000.00

19-Aug Cash 110,000.00


Donated Capital 110,000.00

21-Sep Retained Earnings 232,000.00


Cash Dividends Payable 232,000.00

22-Sep Retained Earnings 648,000.00


Cash Dividends Payable 648,000.00

5-Oct Cash Dividends Payable 880,000.00


Cash 880,000.00

11-Oct Retained Earnings 850,000.00


Property Dividends Payable 850,000.00

5-Nov Cash 22,000.00


Share Warrants 3,300.00
* Discount on Issuance Below Par 2,200.00
Ordinary Share Capital 27,500.00
* Recorded as deduction from total SHE

7-Nov Retained Earnings 1,025,640.00


Stock Dividends Payable 582,750.00
Share Premium - Ord Shares 442,890.00

9-Nov Retained Earnings 140,000.00


Property Dividends Payable 140,000.00

Property Dividends Payable 990,000.00


Financial Asset at Fairvalue through P/L 990,000.00

7-Dec Stock Dividends Payable 582,750.00


Ordinary Share Capital 582,750.00

31-Dec Income Summary 980,000.00


Retained Earnings 980,000.00
AUDITING PROBLEMS - FINALS QUIZ II KEY SOLUTIONS
PROBLEM 1
Ordinary Shares
Issued Shares Outstanding Shares Retained Earnings
100,000 95,000 13,250,000.00
1,000 1,000

20,000 20,000

(40,000.00)
2,000

(4,000)
(3,000)

2,000
118,000 116,000
(232,000.00)

(648,000.00)
(850,000.00)

550 550
118,550 116,550

(1,025,640.00)

(140,000.00)

11,655 11,655

980,000.00
130,205 128,205 11,294,360.00

1 2
Ordinary Share Capital Additional Paid in Capital
5,000,000.00 4,320,000.00
50,000.00
35,000.00

(240,000.00)

1,000,000.00

72,000.00

(20,000.00)

(150,000.00) (120,000.00)

110,000.00
(3,300.00)

27,500.00

582,750.00

6,510,250.00 4,153,700.00
6,510,250.00

3 4
AUDITING PROBLEMS - FINALS QUIZ II KEY SOLUTIONS
PROBLEM 2

SUPPORTING COMPUTATIONS:
Quantity of sold computers 500
Estimated computers to be returned for warranty 80.0%
Estimated computers to be returned for warranty 400
Repair cost 8,000.00
Total Estimated Warranty Expense 3,200,000.00
Total Cost incurred in the year 1,250,000.00
Total Estimated Warranty Liability 1,950,000.00 5

Compound Adjusting Entry:


Warranty Expense 1,950,000.00 6
Estimated Warranty Liability 1,950,000.00

PROBLEM 3

Premium Cost 100.00


Remittance from customer (30.00)
Delivery Cost 20.00
Net Cost per Premium 90.00
Estimated Premiums to be Availed:
Packages of Products Sold 160,000
Divide by: 5
Total Premiums may be availed 32,000
Estimated Premiums to be Availed 55% 17,600.00
Total Premium Expense 1,584,000.00 7
Premiums Availed in the year (1,170,000.00)
Total Estimated Premium Liability 414,000.00 8

You might also like