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QUIZ in AUDIT OF SHAREHOLDERS EQUITY
QUIZ in AUDIT OF SHAREHOLDERS EQUITY
P1. HAYMADI CORPORATION’s post closing trial balance at December 31, 2021 was as follows:
BANKAIS Corporation
Post-Closing Trial Balance
December 31, 2021
Debit Credit
Accounts payable P495,000
Accounts receivable P963,000
Reserve for depreciation 360,000
Reserve for doubtful accounts 54,000
Premium on ordinary shares 1,800,000
Gain on sale of treasury shares 450,000
Bonds payable 720,000
Building and equipment 1,980,000
Cash 396,000
Dividends payable or preference shares 7,200
Share capital-ordinary (P1 par value) 270,000
Inventories 1,116,000
Land 684,000
Financial assets at FVOCI 513,000
Trading securities at fair value 387,000
Net unrealized loss on financial assets at FVOCI 45,000
Share capital – preference (P50 par value) 900,000
Prepaid expenses 72,000
Donated capital 800,000
Share warrants outstanding 208,000
Retained earnings 415,800
Treasury shares – ordinary, at cost 324,000
Totals P6,480,000 P6,480,000
At December 31, 2021, HAYMADI had the following number of ordinary and preference shares:
Ordinary Preference
Authorized 900,000 90,000
Issued 270,000 18,000
Outstanding 252,000 18,000
The dividends on preference shares are P0.40 cumulative. In addition, the preference share has a preference in
liquidation of P50 per share.
Requirements:
1. Share premium/Additional paid-in capital
2. Total contributed capital
3. Unappropriated retained earnings
4. Total equity
1. P3,258,000
2. P4,428,000
3. P91,800
4. 4,474,800