Audit Probs 4 (Final Exam)
Audit Probs 4 (Final Exam)
Audit Probs 4 (Final Exam)
FINAL EXAMINATION
Solutions:
1. Initial Payments per Child #1 P 7,500
Add: Initial Payment per Child #2 2400
Multiply: 8/12 8/12
TOTAL DEFERRED REVENUE P 6,600
30. [(20 employees x 1 day x 12 months) – 150 days] x P 1000 X 105% = P 94,500
32. [(20 employees x 1 day x 12 months) – 150 days] x P 1000 X 105% x 80% = P 75,600
49. Total lease paid from 2011 to 2014 plus lease bonus (squeeze) P 51,410
Divide: 4 4
Annual Lease Expense P 12,853
75.
76. Declared cash dividend Issued Shares Outstanding Shares
Shares Issued
P 44,000 until year end 100,000 100,000
Treasury Shares
Preference Shareatdividends
year end[(4000x100x6%)+12000] (5000)
Reissuance
(36,000) of treasury shares 1000
New shares issued
ORDINARY SHARE DIVIDENDS 10,000 10,000
TOTAL
P 8,000 110,000 106,000
Share split Nov transaction 2 2
77. END BALANCE
Ordinary Shares (Basic Allocation) (200k x 1 x 220,000
5%) 212,000
P 10,000
Ordinary Shares (Participation) (75,000 x 2/5) 30,000
DIVIDENDS TO ORDINARY SHAREHOLDERS P 40,000