LOMIBAO, AIRA LYNN R.
AUDIT OF INVESTMENTS
PROBLEM 1
DATES
03-Jan
08-Jan
05-Apr
08-Apr
15-Jul
08-Dec
bal
adjustments
adj. bal
A CORPORATION
SHARES AMOUNT
1,000
54,000
1,000
(500)
C CORPORATION
SHARES AMOUNT
500
27,000
500
500 ₱ 27,500
CA of FVPL, 12/31/14
A Corp
Gain on sale of FVPL
A Corp
C Corp
D Corp
Dividend Income
B Corp
D CORPORATION
SHARES AMOUNT
E CORPORATION
SHARES AMOUNT
60,000
(27,000)
1,000
A
B
C
D
E
Unrealized Loss
B CORPORATION
SHARES AMOUNT
27,500
54,000
32,000
39,000
20,900
₱173,400
28,000
(27,000)
₱ 1,000
1,000
1,200
5,000
₱ 7,200
60,000
(54,000)
₱ 6,000
1,000
30,000
60,000
1,000
30,000
(6,000)
2,000
1,000 ₱ 54,000
1,000 ₱ 32,000
unrealized loss
Puchases
Investment in A
Investment in B
Investment in C
Investment in D
Investment in E
Cash
April 5, 2014
Cash
Investment in A
Gain on Sale
July 15, 2014
Treasury Shares
Cash
1,000
36,000
1,000
36,000
3,000
1,000 ₱ 39,000
500
50
550
20,000
20,000
900
550 ₱ 20,900 work back
August 15, 2014
Cash
Treasury Shares
Share Premium
54,000
60,000
30,000
36,000
20,000
200,000
28,000
27,000
1,000
33,000
33,000
Cash
Dividend Receivable
Dividend Income
December 31, 2014
Investment in A
Investment in C
Investment in D
Investment in E
Unrealized Loss (I/S)
Unrealized Gain (I/S)
Investment in B
20,000
16,500
3,500
2,200
5,000
7,200
500
2,000
3,000
900
6,000
6,400
6,000
PROBLEM 2
Adjusted balance of the investment account
dividend income year 2014:
Shares
Market value, Jan 1
April 30 stock dividend
June 10 sale
Dec 14 sale
Balances before adjustment to market
Adjustments to market
Balance, Dec 31 at market
Peso Balance
500
35,000
250
(250)
(11,667)
(100)
(4,667)
400
18,666
₱
8,534
400 ₱
27,200
35,000/(500+250)=46.67
(250 x 46.667
(100 x 46.667)
July dividends 500 shares x 5
Dividends on 100 shares sold (100 x 50 x .20)
Dividends accrued on dec 31 (400 x 50 x. 20)
Total dividend income
Unrealized Gain
May 31, 2014 (no entry)
Computation: as of june 10 there is 750 shares (500 +250) ; 35000/750 = 46.667
Selling price on june 10 (250x67)
Carrying value (cost of sale)
Gain on shares sold june 10
Proceeds from sale dec 14
Dividends included(sold div. on)100x10
Selling price without dividends
Carrying valur 100 x 46.667
Gain on shares sold dec 14
₱
₱
16,750
(11,667)
5,083
6,000
(1,000) (50 par x .20 = 10 x 100 shares)
5,000
(4,667)
333
June 22, 2013
Investment in Darlyn Co.
Cash
32,500
December 31, 2013
Investment in Darlyn Co.
Unrealized Gain (I/S)
2,500
32,500
2,500
June 10, 2014
Cash
Investment in Darlyn Co.
Gain on Sale
₱
2,500
1,000
4,000
7,500
16,750
11,667
5,083
July 31, 2014
Cash
Dividend Income
2,500
December 10, 2014
Dividend Receivable
Dividend Income
5,000
December 14, 2014
Cash
Investment in Darlyn Co.
Dividend Receivable
Gain on sale
Decmber 31, 2014
Investment in Darlyn Co.
Unrealized Gain
2,500
5,000
6,000
4,667
1,000
333
8,534
8,534
PROBLEM 3
AUDIT ADJUSTING ENTRIES
January 1, 2014
Investment in Cristine Corp
Unrealized Gain (OCI)
January 2, 2014
Cash
Dividend Receivable
March 5, 2014
Dividend Income
Investment in Cristine Corp
Cash
April 1, 2014
Cash
Dividend Income
July 1, 2014
Cash
Investment in Cristine Corp
Gain on Sale
Accumulated Unrealized Gain
Gain on sale (I/S)
135,000
135,000
12,000
12,000
3,000
207,000
210,000
August 10, 2014
Investment in Oil Corp
Dividend Income
December 20, 2014
Cash
Dividend Income
December 29, 2014
Accounts Receivable
Investment in Cristine Corp
Gain on sale
Accumulated Unrealized Gain
Gain on sale (I/S)
15,000
3,000
3,000
10,000
10,000
90,000
65,000
25,000
5,000
5,000
15,000
360,000
325,000
35,000
100,000
100,000
December 31, 2014
Investment in Christine Corp
Investment in Oil Corp
Unrealized Gain (OCI)
258,000
500
258,500
PROBLEM 4
S CORP ORDINARY
Share
Amount
Date
bal
14-Feb
01-Jun
17-Jan
01-Oct
bal
i/s
bal
1,500
1,500
30,000
30,000
1,500 ₱
30,000
S CORP ORDINARY
30,000
S CORP PREFERENCE
28,000
L INC.
38,500
T CORP
37,400
P CORP
1,760,000
2014 CV fvpl ₱1,893,900
S CORP PREFERENCE
Share
Amount
1,000
45,000
(500)
500
(22,500)
22,500
5,500
500 ₱ 28,000
Apr-06
Oct-06
Jun-30
Mar1/Jun1/Sep1/Dec1
L INC.
Share
Amount
6,000
65,000
(2,500)
(27,083)
3,500
37,917
583
38,500
3,500 ₱
income
1,200
1,200
3,500
560,000
₱ 565,900
T CORP
Share
Amount
2,000
55,000
200
(500)
(12,500)
1,700
1,700 ₱
gains
5,417
7,500
Jan-17
Oct-01
₱
12,917
Share
P CORP
Amount
100,000
1,600,000 purchase
(200,000) dividend
360,000 income
42,500
100,000 ₱1,760,000
(5,100) unrealized loss
37,400
losses
(2,000)
Jun-01
₱
(2,000)
PROBLEM 5
2013
May-01 Investment in Aubrey Bonds
Interest Receivable
Cash
376,220
6,000
382,220
Sep-01 Cash
Interest Receivable
Interest Revenue
18,000
Dec-31 Interest Receivable
Interest Revenue
12,000
Investment in Aubrey Bonds
Unrealized Gain (I/S)
2014
Mar-01 Cash
Interest Receivable
Interest Revenue
May-01 Cash
Loss on Sale
Interest Receivable
Investment in Aubrey Bonds
Jul-01
Investment in Aubrey Shares
Investment in Aubrey Bonds
Gain on Exchange
176,000
160,500
15,500
6,000
12,000
Cash
Interest Revenue
4,500
12,000
Sep-01 Cash
Interest Revenue
6,750
Dec-31 Interest Receivable
Interest Income
4,500
4,500
6,750
51,780
51,780
18,000
12,000
6,000
104,500
4,000
1,500
107,000
Unrealized Loss (I/S)
Investment in Aubrey Bonds
2015
Mar-01 Cash
Interest Receivable
Interest Income
Sep-01 Cash
Interest Income
Cash
Loss
Investment in Aubrey Bonds
4,500
3,000
3,000
6,750
4,500
2,250
6,750
6,750
150,000
7,500
157,500
PROBLEM 6
PROBLEM 7
PROBLEM 8
PROBLEM 9
PROBLEM 10
PROBLEM 11