As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients.1. Monty Corp. is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 4,000 shares of its $20 par value common stock. The owners’ asking price for the land was $125,000, and the fair value of the land was $118,000.2. Wildhorse Co. is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 19,000 shares of its $8 par value stock. At the time of the exchange, the land was advertised for sale at $269,000. The stock was selling at $9 per share.Prepare the journal entries for each of the situations above.

Journal: Journal is the book of original entry. Journal consists of the day today financial…

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Prepare the journal entries for each of the situations above.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter4: Professional Legal Liability

Section: Chapter Questions

Problem 19RQSC

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As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. Wildhorse Co. is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 4,000 shares of its $20 par value common stock. The owners' asking price for the land was $126,500, and the fair value of the land was $125,000. 1. Pharoah Company is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 19,000 shares of its $10 par value stock. At the time of the exchange, the land was advertised for sale at $266,500. The stock was selling at $11 per share. 2. Prepare the journal entries for each of the situations above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Dates Account Titles and…
As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. 1. Bramble Corp. is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 5,000 shares of its $19 par value common stock. The owners’ asking price for the land was $123,500, and the fair value of the land was $117,000. 2. Crane Company is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 21,000 shares of its $10 par value stock. At the time of the exchange, the land was advertised for sale at $275,000. The stock was selling at $11 per share. Prepare the journal entries for each of the situations above. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the…
As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. Swifty Corporation is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 5,800 shares of its $20 par value common stock. The owners' asking price for the land was $139,200, and the fair value of the land was $127,600. 1. Blue Spruce Corporation is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 23,200 shares of its $10 par value stock. At the time of the exchange, the land was advertised for sale at $290,000. The stock was selling at $11 per share. 2. Prepare the journal entries for each of the situations above. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Dates…
As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. 1. LR Corporation is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 5,000 shares of its $20 par value common stock. The owners’ asking price for the land was $120,000, and the fair value of the land was $110,000. 2. Vera Corporation is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 20,000 shares of its $10 par value stock. At the time of the exchange, the land was advertised for sale at $250,000. The stock was selling at $11 per share. Prepare the journal entries for each of the situations above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients Novak Corp. is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 3,000 shares of its $20 par value common stock. The owners asking price for the land was $130,000, and the fair value of the land was $115,500. 1. 2 Prepare the journal entries for each of the situations above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation No. 1. Crane Company is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 20,000 shares of its $10 par value stock. At the time of the exchange, the land was advertised for sale at $271,500. The stock was selling at $11 per share. 2.…
As an auditor for the CPA firm of Bunge and Dodd, you encounter the following situations in auditing different clients. Desi Corporation is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 5,000 shares of its $20 par value common stock. The owners’ asking price for the land was $120,000, and the fair market value of the land was $115,000. Lucille Corporation is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 20,000 shares of its $10 par value stock. At the time of the exchange, the land was advertised for sale at $250,000.The stock was selling at $12 per share. Instructions: Prepare the journal entries for each of the situations above.
As an auditer for cpa firm of Hickson and Calvert you encounter the following situations in auditing different clients 1. Skysong,inc is closely held corporation whos stock is not publicly traded on december 5, the corporation acquired land by issuing $3000 share of its $20 per a value common stock .the owner asking price for land was $121500 and the fair value of the land was $116500 2.oriole company is a publicly held corporation whose common stock is traded on the securities markets. On june 1, its acquired land by issuing 19000 shares of its $10 per a valua stock .at the time of the exchange the land was advertised for sale at $260000. The stock was selling at $11 per a share. Prepare the journal entries for each of the situations above
View Policies Show Attempt History Current Attempt in Progress Your answer is partially correct. As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. Pina Colada Corp. is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 3,000 shares of its $20 par value common stack. The owners' asking price for the land was $135,000, and the fair value of the land was $115,500. 1. 2. Cullumber Company is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 19,500 shares of its $10 par value stock. At the time of the exchange, the land was advertised for sale at $267,500. The stock was selling at $11 per share. Prepare the journal entries for each of the situations above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,…
Your answer is partially correct. As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. 1. Windsor, Inc. is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 3,000 shares of its $20 par value common stock. The owners' asking price for the land was $126,000, and the fair value of the land was $115,500. 2. Sheridan Company is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 20,000 shares of its $10 par value stock. At the time of the exchange, the land was advertised for sale at $268,500. The stock was selling at $11 per share. Prepare the journal entries for each of the situations above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the…
Monicker Co. engaged the audit firm of Gasner & Gasner to audit its financial statements that Monicker was going to use in connection with a public offering of its securities. Monicker's stock regularly trades on the NASDAQ. The audit was completed and the auditor issued an unqualified opinion on the financial statements, which Monicker submitted to the SEC along with the registration statement. Three hundred thousand shares of Monicker common stock were sold to the public at $13.50 per share. Eight months later, the stock fell to $2 per share when it was disclosed that several large loans to two "paper" companies owned by one of the directors were worthless. The loans were secured by the stock of the borrowing corporation and by Monicker stock owned by the director. These facts were not disclosed in the financial statements. The director and the two corporations are insolvent. Considering these facts, indicate whether each of the following statements is true or false, and briefly…
Discuss the following situations in the context of the independence of the auditor, showing clearly the principles involved: i.The audit manager in charge of the audit assignment of GEDA Ltd holds 5,000 ordinary shares (@ GH¢1 each) in the company (total shares in issue – 500,000). The audit partner holds no shares. ii.The total fee income of SAGE & Associates, a local audit firm, is GH¢700,000. The recurring audit fee receivable from Celestial Ltd, a private company is GH¢100,000. iii.The audit partner of an auditing firm is responsible for two audit assignments, Aman Ltd and Silta Ltd. Aman Ltd has recently tendered for a contract with Silta Ltd for the supply of material quantities of goods over a number of years. Silta Ltd has asked the audit partner to advice on the matter.
Monicker Co. engaged the audit firm of Gasner & Gasner to audit its financial statements that Monicker was going to use in connection with a public offering of its securities. Monicker's stock regularly trades on the NASDAQ. The audit was completed and the auditor issued an unqualified opinion on the financial statements, which Monicker submitted to the SEC along with the registration statement. Three hundred thousand shares of Monicker common stock were sold to the public at $13.50 per share. Eight months later, the stock fell to $2 per share when it was disclosed that several large loans to two "paper" companies owned by one of the directors were worthless. The loans were secured by the stock of the borrowing corporation and by Monicker stock owned by the director. These facts were not disclosed in the financial statements. The director and the two corporations are insolvent. Considering these facts, indicate whether each of the following statements is true or false, and briefly…

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1.		Monty Corp. is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 4,000 shares of its $20 par value common stock. The owners’ asking price for the land was $125,000, and the fair value of the land was $118,000.
2.		Wildhorse Co. is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 19,000 shares of its $8 par value stock. At the time of the exchange, the land was advertised for sale at $269,000. The stock was selling at $9 per share.