You have been assigned to the examination of the capital stock of B Company. As a result of your review of changes in the account for the year, you have identified the following transactions:
1.Cancellation of treasury stock.
2.Issuance of a 5% stock dividend.
3.Issuance of capital stock in exchange for land wanted as a site for possible future expansion.
4.Issuance of ten shares of $25 par common stock having a market price of $125 per share in exchange for a $1,000 convertible bond.
REQUIRED: State the audit procedures you would use to gather evidence in support of the propriety of the above transactions.

Question

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The Answer of You have been assigned to the examination of the capital stock of B Company. As a result of your review of changes in the account for the year, you have identified the following transactions:
1.Cancellation of treasury stock.
2.Issuance of a 5% stock dividend.
3.Issuance of capital stock in exchange for land wanted as a site for possible future expansion.
4.Issuance of ten shares of $25 par common stock having a market price of $125 per share in exchange for a $1,000 convertible bond.
REQUIRED: State the audit procedures you would use to gather evidence in support of the propriety of the above transactions.

You Have Been Assigned to the Examination of the Capital