Professional Documents
Culture Documents
Audit of Equity
Audit of Equity
4. The adjusted balance of the shareholders’ equity on December 31, 2018 is:
a. 1,944,000 c. 1,744,000
b. 1,704,000 d. 1,904,000
5. The book value per share of Alex Corp’s stock on December 31, 2018 was:
a. 140.00 c. 128.20
b. 132.22 d. 125.29
8. Treasury shares:
a. 160,000 c. 55,000
b. 80,000 d. 50,000
9. Total equity:
a. 22,190,000 c. 24,690,000
b. 24,770,000 d. 24,840,000
Transactions during 2018 and other information relating to the equity accounts were as follows:
On January 26, Cam reacquired 75,000 ordinary shares for P 11 per share.
On April 04, Cam sold 45,000 treasury shares for P 14 per share.
On June 01, Cam declared a cash dividend of P 1 per share, payable on July 15, 2018 to shareholders of record on
July 01, 2018.
On August 15, each shareholder was issued one right for each share held to purchase two additional shares for P 12
per share. The rights expire on October 31, 2018.
On September 30, 150,000 rights were exercised when the market value of the share was P 12.50 per share.
On November 02, Cam declared a two for one share split up and changed the par value of the share from P 10 to P 5
per share. On November 20, shares were issued for the share split.
On December 05, 60,000 shares were issued in exchange for a secondhand equipment. It originally cost P 600,000,
was carried by the previous owner at a carrying amount of P 300,000 and was recently appraised at P 390,000.
Profit for 2018 was P 720,000.
Determine the following as of December 31, 2018:
21. Share capital:
a. 12,600,000 c. 10,800,000
b. 10,050,000 d. 12,300,000
- end -