Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 22, Problem 28DQP
(a).
To determine
Determine how balances of September can be verified by the auditor.
(b).
To determine
Determine what auditor can do to evaluate net income amount.
(c).
To determine
Determine the sources of evidence that the auditor can use to satisfy the occurrence objective of repurchase of common stock, share based compensation, common stock issued.
(d).
To determine
Determine the relation between
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You’ve been hired to perform an audit of Hubbard Company for the year ended December 31, 2019. You find the following account balances related to shareholders’ equity:
Preferred stock, $100 par
$ 33,000
Common stock, $10 par
68,000
Capital surplus
(15,100)
Retained earnings
172,000
Because of the antiquated terminology and negative balance, you examine the Capital Surplus account and find the following entries:
Credit (Debit)
Additional paid-in capital on common stock
$ 27,700
Capital from donated land
16,900
Treasury stock (400 common shares at cost)
(5,600)
Additional paid-in capital on preferred stock
2,000
Stock dividend (50%)
(20,000)
Prior period adjustment (net of income taxes)
(10,100)
Loss from fire (uninsured), 2018
(18,100)
Property dividend declared
(5,600)
Cash dividends declared
(23,300)
Balance
$ (36,100)
Your examination of the Preferred Stock and Common Stock accounts reveals that the amounts shown correctly state the…
You’ve been hired to perform an audit of Hubbard Company for the year ended December 31, 2019. You find the following account balances related to shareholders’ equity:
Preferred stock, $100 par
$ 33,000
Common stock, $10 par
68,000
Capital surplus
(15,100)
Retained earnings
172,000
Because of the antiquated terminology and negative balance, you examine the Capital Surplus account and find the following entries:
Credit (Debit)
Additional paid-in capital on common stock
$ 27,700
Capital from donated land
16,900
Treasury stock (400 common shares at cost)
(5,600)
Additional paid-in capital on preferred stock
2,000
Stock dividend (50%)
(20,000)
Prior period adjustment (net of income taxes)
(10,100)
Loss from fire (uninsured), 2018
(18,100)
Property dividend declared
(5,600)
Cash dividends declared
(23,300)
Balance
$ (36,100)
Your examination of the Preferred Stock and Common Stock accounts reveals that the amounts shown correctly state the…
Determine the following as a result of your audit:a. How much is the adjusted retained earnings as of December 31, 2020?b. How much is the adjusted retained earnings as of December 31, 2021?c. How much is the adjusted retained earnings as of December 31, 2022?
Chapter 22 Solutions
Auditing And Assurance Services
Ch. 22 - List four examples of interest-bearing liability...Ch. 22 - Prob. 2RQCh. 22 - Prob. 3RQCh. 22 - Prob. 4RQCh. 22 - Prob. 5RQCh. 22 - Distinguish between (a) tests of controls and...Ch. 22 - Prob. 7RQCh. 22 - Prob. 8RQCh. 22 - Prob. 9RQCh. 22 - Prob. 10RQ
Ch. 22 - Prob. 11RQCh. 22 - Prob. 12RQCh. 22 - Prob. 13RQCh. 22 - Prob. 14RQCh. 22 - Prob. 15RQCh. 22 - Explain the relationship between the audit of...Ch. 22 - Prob. 17.1MCQCh. 22 - Prob. 17.2MCQCh. 22 - Prob. 17.3MCQCh. 22 - Prob. 18.1MCQCh. 22 - Prob. 18.2MCQCh. 22 - Prob. 18.3MCQCh. 22 - Prob. 19.1MCQCh. 22 - Prob. 19.2MCQCh. 22 - Prob. 19.3MCQCh. 22 - Prob. 20DQPCh. 22 - Prob. 21DQPCh. 22 - Prob. 22DQPCh. 22 - Prob. 23DQPCh. 22 - Prob. 24DQPCh. 22 - Prob. 25DQPCh. 22 - Prob. 26DQPCh. 22 - Prob. 27DQPCh. 22 - Prob. 28DQPCh. 22 - Prob. 29DQPCh. 22 - Prob. 30DQP
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